If you are paying more for your auto insurance and home insurance premiums, you might want to look at your credit reports and credit score. If you have to pay higher interest rates on your auto loans or mortgage loans, it could be on account of your credit reports and credit score.
Financial institutions such as banks, insurance companies and mortgage companies charge higher fees, premiums and interest rates if your credit score is a bad credit score. If you improve your credit score, you can save money on interest, premiums and even your utility bills.
The Steps Needed To Improve Credit Score
#1 – What’s A Good Credit Score?
- Learn the rules of the credit score game so you can follow the rules.
- Financial institutions consider a credit score of 350 to 750 to be a credit score in need of credit repair.
- A credit score above 750 is a good credit score.
- A credit score of 850 is a perfect credit score.
- A perfect credit score may be hard to attain, but it is possible.
#2 – Learn Your Credit Score
- To know if you need to improve credit score, you need to know where you stand.
- You can only improve credit score if you know your number.
- Order a free credit score.
- You can only find your credit score on your credit reports.
- You can get free credit reports from each of the 3 national credit reporting agencies once a year. Yes, these credit reports are available to you on an annual basis at no cost.
#3 – Develop New Financial Habits To Improve Credit Score
Watch Your Credit Limits
- If your credit cards are maxed out to the limit, stop using them.
- Put your credit cards away until you can pay down your current credit card balances.
Get Out Of Debt
- Work on paying off your credit card balances.
- Pay a little bit each month, just make sure you never miss a payment.
- Pay down your other debts and loans.
- By paying down your debt you show creditors that you are serious about cleaning up and improving your credit score.
Stop The Late Payments
- If you make your payments late, start paying on time.
- Late payments reflect poorly on credit reports.
- Creditors view late payments as irresponsible and lower your credit score because of that.
- Late payments on auto loans, mortgage payments, insurance premiums as well as credit cards have an effect on your credit score; so avoid making late payments on all of your bills.