It's not just a number. Failing to take steps to improve your credit score could cost you hundreds or thousands of extra dollars on a home loan, a car payment or a credit card or insurance bill.
You know your credit score can affect everything from whether you qualify for a mortgage to whether an employer hires you, but have you ever made a plan to consciously improve your score? If not,it may be costing you.
When it comes to mortgages, auto lending and credit cards, the higher your score the likelihood the lower the interest rate you're going to pay. Therefore, the time and effort it takes to improve your credit score could save you hundreds of thousands of dollars over the course of your lifetime.
Loans and Scores
For most people, a mortgage loan is where they'll reap the greatest rewards from an improved credit score.
Generally speaking - the better the score, the better the interest rate. The difference in interest paid over the life of the loan can be substantial.
Not Just Mortages
While the dollar amounts are most striking when it comes to primary mortgages, the effects of lower credit scores are not limited to your purchase of a home. If you want to refinance and pull out some cash to finish your basement or pay off some credit-card bills, your credit score can not only determine your interest rate, but it can also dictate how much of your equity you can cash out. The higher your credit score, the higher the amount you'll be able to pull out. Auto loans can be just as costly for people with lower credit scores.
No one wants to throw away money. But by failing to take steps to improve your credit score, you could be giving up thousands of dollars a year. The best way to improve a blemished credit rating is to pay your bills on time and keep debt to a minimum.