You can save a lot of money by simply raising your credit score. And it isn't that difficult a task. It simply takes time. My husband and I have both raised our scores by over 150 points each in less than two years. Simply through time and some wise decision making. The first step is to check your credit report. You can obtain your credit report for free each year from each of the three credit reporting agencies. We space it out so that we are checking ours every four months or so. This keeps us up to date on what our credit report says. When you get your credit report, you will be offered a credit score for a nominal fee. Go ahead and spend this money for your score. It is a wise investment of your dollars. Keep in mind that each score is calculated differently. They will vary from agency to agency. It may also vary from lender to lender, depending on where they get their scores from. But they will all be in the same ballpark. If you are raising one score, chances are that they are all going up. Review your credit report carefully. Almost 90% of consumers will have false information on their reports at some time. It happens. And it drags down your score. If you see something inaccurate on your report, you need to take steps to correct it immediately. There are several factors that contribute to your credit score. The five major components are: payment history, account balances, age of established credit, recent inquiries and opened accounts and types of credit. It may seem like you should rid yourself of all credit cards due to their "evil." However, this isn't always great for your credit score. When it comes to credit cards, having a few can look good on your report. But you should have little to no balance on these cards. If you have a hard time about using your credit wisely, put the cards in a safe deposit box at the bank. Pay down your balances as quickly as possible. My husbands score is actually held back a little by the fact that he has no credit cards at all. If you have an account with a zero balance, consider keeping it. It can add to your credit history, account balance and payment history. The number one factor to raising your credit score is paying your bills on time, every time. Have them automatically withdrawn from your checking. Make yourself pay them well in advance. Then all it takes is a little time to distance yourself from negative reports on your credit. With time, paid off debts and on-time payments, you are guaranteed to raise your credit score. And you will see savings as a result. You will get better interest rates, more favorable insurance premiums and the satisfaction of knowing that when you need to borrow, you will be able to borrow. A perfect credit score will go a long way for you. |
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