Credit – Reap benefits of a high credit score

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A credit score is a number between 300 and 850 that serves as a snapshot of your credit report at any given time. A low credit score could cost you up to $240 extra per month on a $100,000 mortgage, according to one estimate. That’s more than $2,800 per year – even with rock-bottom interest rates.

Improving a low score can benefit you because a variety of people use it to help make decisions.

* Insurers may charge you a lower premium on car or homeowner’s insurance. People with poor scores may pay extra and may be denied coverage or renewal.

* Lenders may charge you lower interest rates, fewer fees, or smaller fees – and grant you higher credit limits.

* Private mortgage insurance (PMI) may cost less.

* Landlords may request your credit score to help judge whether you’ll pay rent regularly and on time. A high score could mean your rent application is less likely to get turned down. Deposits and fees might be lower, too.

* Your credit score may play a role in whether you’re chosen for a job – particularly if the job requires you to be responsible for money.

* Utility companies – including cell phone service providers – may consider your credit score when they decide whether to offer you their services.

To help improve your credit score, find out what it is, and make sure mistakes on your credit report aren’t keeping it artificially low. You score will cost you, but you can purchase it while getting your credit report for free. If you find mistakes in your credit report, correct them.

Use these tips to help work toward a score of 720 or higher. Every little increase can help.

* Collections and late payments sink your score, yet that score improves as you build a history of paying bills on time. If you’ve missed payments, get current and keep current.

* Pay off large balances on credit cards. Keep those balances low.

* Don’t open unnecessary new credit cards just to boost available credit.

* Handle your cards with extreme care. Keep the balances as low as possible, and meet every monthly payment deadline.



All the best,



Timben