You’ve heard it over and over again…learn your credit score, monitor your credit score, guard your credit score and value your credit score. But do you know why? Do you know why credit scores are so important to your finances? Do you know why a number on a credit report is so vital to your financial life? Do you know the benefits of improving your credit score?
You & Your Credit Score
A high credit score is a good credit score. Always remember that there are only positives, no negatives, when you have a high or good credit score. Financial institutions will love to do business with you when you have a high, good credit score.
The Benefits Of A Good Credit Score
Plain and simple, when you have a good credit score, you spend less money for goods and services. When you have a good credit score, financial institutions consider you financially responsible, so they are very interested in doing business with you.
Auto loan companies will offer you a lower interest rate if you have a good credit score.
Mortgage companies will charge you a lower interest rate if you have a high credit score.
You will not pay as much on your insurance premiums with a high credit score. Insurance companies believe that with a high score, you will be less likely to pay late or to file claims.
You will be offered better options on credit cards when you have a good credit score. Credit card companies believe you will be more likely to pay on time when you have a high credit score.
What’s A Good Credit Score?
If your credit score is between 300 and 750, you need to improve credit score. The financial industry considers a credit score below 750 to be in need of credit repair.
350 – 750
A credit score close to 350 is very bad credit. The closer your score gets to 750 the better.
750 – 850
Your credit score is good in this range.
If your score is at 850 or above, you are considered PERFECT.
How To Improve Credit Scores
It really is in your best interest to improve credit scores. Why pay more for things that you need to; especially in tough economic times.
The first thing you need to do to improve credit scores is to order free credit reports. You can get free credit reports once a year from each of the 3 national credit reporting agencies.
The reports are really free, so don’t delay in ordering yours. The sooner you order your free credit reports the sooner you will know what range your credit score falls into and whether or not you need credit repair.