Better Score, Better Deals

Improving your credit score can help you save thousands on your family’s cars, electronics, loans, insurance, utilities, credit cards, and more. Learn how to improve your credit score and how to maximize this improvement in order to get the best deals.

Who uses credit scores?

Credit scores are used by a wide variety of businesses in order to evaluate your financial behavior. Because credit scores have been shown to accurately predict risky behavior, they are becoming increasingly common in industries outside of the financial world. The most common businesses that use your credit scores are:

• Lenders
• Credit card companies
• Home insurers
• Auto insurers
• Utility companies
• Employers
• Landlords
• Cell phone companies
• Government agencies

What credit score do I need for the best rates?

In most situations, you’ll need a credit score above 700 in order to qualify for standard rates and deals. Credit scores usually range from 300 to 850, with 850 being the best possible credit score. If your credit score is below 650, you will probably have to pay a deposit or higher interest rates. If your credit score is below 550, you will likely have a very hard time being approved for accounts. Not sure where you stand?

How can I improve my credit score?

Before you decide how to improve your credit scores, you need to understand why they are currently low. The first step is to check your credit reports from Equifax, Experian, and TransUnion online. If your credit score is low because you don’t have enough credit history built up, you can improve your score by opening a new account and using credit regularly. If you credit score is low because you have too much debt, reducing your credit card balances and increasing your credit limits can give it a boost. If your credit score is low because you have a negative record on your report, such as a bankruptcy or collection account, you may need to wait a few years for this record to expire.

How can I get the best deals?

You should always check your credit scores on your own before you apply for credit, insurance, a job, or an apartment. Ideally, you should check your credit at least 3 months before a major purchase. This early review gives you time to correct any inaccuracies or credit problems you discover before they impact your rates. Understanding your credit score can also help you find the best deals with businesses. If you know that you have an excellent credit score, you are empowered to negotiate the best deals. At the same time, if you know you have credit issues, you should take some extra time to compare your options and avoid scams.

How much can I save?

Reducing your interest rates on a major home loan can save you thousands of dollars over the life of your loan. Even improving your credit before an auto loan application can save your thousands. Read about three steps to save you $3,000 on a car. You can save hundreds of dollars each year on insurance and you can avoid costly cell phone, apartment, and utility deposits by having a good credit score. Calculate your potential savings by using our free online financial calculators.