Save Money On Your Credit Score
Never seem to have enough money? Checked your credit score lately? Your credit score may be costing you more money than you realize. When your credit score is low you waste money by paying more for everything. With the cost of everything going up and unemployment on the rise who wants to waste money. Learn how to improve your credit score.
#1 – Get To Know Your Score
There is no excuse for not knowing your credit score; you can get a free credit report once a year from each of the 3 major reporting agencies (Trans-Union, Equifax and Experian). Take the first step by reviewing your credit score at Lending Tree. It is so important to stay current on your credit reports so that you can correct any errors that may have occurred. Mistakes can happen and it is your responsibility to correct them. Credit reporting agencies just collect and report the data they receive they do not check it for accuracy, that’s your job.
#2 – Learn What Counts
Financial institutions take credit scores very seriously. If your score is between 750 and 850 you will save money on interest, rent and insurance premiums. Individuals with scores between 640 and 750 will pay a bit more for goods and services. If your score is below 640, things will get expensive, period!
#3 – Improve Your Payment History
Thirty-five percent of your credit score depends upon on how good you are at paying your bills on time. Creditors, insurance companies, landlords and mortgage lenders prefer to work with someone who pays their bills on time, every single time. If you are a late payer, work on that. By improving your payment habits you will save money in late fees plus boost up your credit score to a level that saves money on everything you buy.
#4 – How Much Do You Owe? How Much Can You Get?
Thirty percent of your score is based upon the amount of your credit card balances compared to the amount of credit available to you. This is called your “credit utilization” ratio. If you have $20,000 of credit available and your credit card debt equals $2,000 then your ratio is 20%. Creditors consider 10% to be a good credit ratio benchmark.
When you aren’t sure where all your money goes start by pulling your credit report and checking on your credit score. Credit reports have been know to hold some surprises.