1. How a good credit score can save you money
You’ve probably heard how important your credit score is by now. Your credit score is
connected to your financial plans and decisions. It will determine your credit worthiness,
whether your load will be approved or rejected. But did you know that having a good credit
score can save you a lot of money? Read more to find out the benefits of having a high
score.
When you have a high score, banks and lenders will see you as a responsible
customer, that you are less of a risk of defaulting. If you are applying for a loan with a
good score, the lender will surely give you a small interest rate. A small interest rate
can help you save you hundreds or even thousands in the long run. Very well worth it
if you are trying to save for something else important.
Looking for a place to stay in? Landlords often run a credit check before they let you
move in. If they see that you are a risk, they will most probably ask for a higher
deposit from you.
Cell phone companies, cable/satellite TV companies or other service providers may
do the same thing too. They also do a background check on their customers. Again,
if they see you as a risk, they will ask a higher deposit from you.
Check credit score regularly and make a huge change for you and your score. Keeping track
of your score will help you know if there are any mistakes or false claims in your account. It
will help you move quickly about it, preventing negative effects on your credit in the future.
Better if you ask for a copy of your credit report every 3-4 months, just get your free credit
report from 3 of the credit agencies.
Next, try to finish off your balances. You’ll clean your report faster and you’ll be giving your
score a quick boost as well. If you can shell out more than what is required, then you better
do so. You’ll finish it off faster and the interest rate will be minimized too. As soon s the bill
arrives, make sure to pay for it immediately. Missing a payment will cost you a lot of
headaches in the future because it’ll be staying on your record for 7 years even if you’ve
already finished paying for it.
The benefits with a good credit score can save you money and your life. It’s best to take care
of it as early as possible to avoid drawbacks in the future.