There's a lot to your credit score and that seemingly random number affects more than just your ability to get a loan. Here are four good reasons to know your credit score and to keep track of it on a regular basis:
1. A good credit score translates to lower interest rates.
Many people are aware that in obtaining a loan or mortgage, there are minimum requirements for credit scores. However, many others are unaware that once these loans are approved, credit scores also make a significant difference in the interest rate you'll receive. This means that the best interest rates are still reserved for those who have the highest credit scores, even if you have the minimum credit score required to obtain the loan. A difference in a few percentage points can mean a significant amount of money saved over the life of the loan.
2. Late payments could increase the current interest rate you're now paying on some lines of credit.
In the fine print of many credit card contracts, there is a clause that allows the credit card company to increase your current interest rate if you make a payment more than 60 days past the payment due date. This increase could be disastrous for your future standing with the creditor and could have a significant impact on the amount you pay for the loan over the long term.
3. Your credit score affects your attractiveness as a tenant.
When considering anyone who wants to rent or lease a place to live, many landlords look for a minimum required credit score. This fact is common knowledge. What many people don't realize is that to determine if that person is likely to be late on payments or have financial problems, landlords may also want to look at a person's credit report. This little piece of paper could mean trouble for you if there are several people looking to rent the same property. If another applicant has a better score reflected by fewer late payments, less debt and other things, you still might be passed over as a potential occupant even if your credit score meets the minimum requirements.
4. A lower score could mean required deposits for utilities.
Since such services are considered goods that are provided up front each billing cycle, many utility companies (water, gas, electric) check applicants' credit scores before hooking up services at a particular address. You will likely be required to put down a significant deposit if your credit score only hits or is lower than the minimum. Therefore, to get and keep the best possible rates and services, it is now more important than ever to know your score and work to maximize it.
New You Credit Repair offers a variety of uniquely effective solutions to common financial problems. Once we review your financial situation, issues and goals, we will tell you which services we recommend for your specific situation, and where you should start. Call 866-403-0248 or go to http://www.newyoucreditrepair.com for more information.