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Better Score, Better Deals
by Credit.com
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.
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