How Important Is It To Improve Credit Scores

Improve credit scores for lower interest rates

Improve Credit Score | Depends On What You Want

Your credit score is only important to you if you want a mortgage, a credit card or an auto loan.  If you want low insurance premiums, low-interest rates on loans and credit cards your credit score is also important.

Now, if you aren’t looking for any of those financial products or programs, than your credit score is not important.  However, in today’s financial world, since when can you get by without insurance, a mortgage, a car loan or a credit card?

Your credit report and credit score are the first two things the financial industry looks at when evaluating you as a potential customer.   If your credit score is too low, you will either be charged higher fees for services rendered or you will be denied services.   Based on that actuality, if your credit score did not seem important before, it should seem quite important now.

How You Are Evaluated By The Financial Industry

Your Perfect Credit Score

If your credit score is 850 you do not need to improve your credit score because your score is perfect.   The financial industry will be falling all over themselves to do business with you.   You will get low-interest rates, you will receive many credit card offers.   Just be aware though, to keep your perfect 850, avoid opening lots of new credit cards because that will lower your score.

A Good Credit Score

improve credit scoresIf your credit score is between 750 and 850, you have a good score.  Your auto and home insurance company will charge you the lower premiums, your mortgage company will offer you the lower interest rates and your auto loan or student loan should also qualify for lower interest rates.

You should strive to improve your credit score to an 850 if your score is hovering around 750.   The closer you get your credit score up to 850, the more you will save money on interest rates, premiums and fees.

Needs Credit Score Improvement

A credit score between 350 and 750 needs improvement, that is if you want to save money on fees and interest rates.   The closer your credit score is to 350, the worse you look as a client to financial vendors such as mortgage companies loan companies and insurance companies.

A low credit score of 350 tells the financial industry that you could be financially unstable and they do not want to do business or extend you credit if you are in that financial position.

It is in your best interest to take the time to improve your credit score, you will save money in the long run.


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