Credit Repair How To

First of all, you need to understand what is meant by a "credit score." The fact is, most consumers still don’t understand that their credit score measures their credit risk. Your credit score, sometimes called a FICO score for the Fair Isaac Corporation, is based on information about you from companies that gave you credit in the past. The lower your credit score, the higher the risk you pose to banks and other lenders. In this article, we will spell out five reasons why raising your credit score will improve your life.

Reason #1 A higher credit score will get you a more affordable mortgage. Particularly in these days of tightening credit, banks pay close attention to your FICO score when you apply for a home loan. Improve your credit score and get a lower interest rate. Just a 2% reduction in the interest rate on a 30 year fixed mortgage on a $200,000 home will save you over $96,000! Now, isn’t that worth doing a little work on improving your credit score

Reason #2 Pay less for your car. The interest rate on your auto loan is closely linked to your credit score. Clean up your credit report, and you’ll be able to afford a nicer car for the same monthly payments!

Reason #3 Lower your auto insurance premiums. It’s true! Many auto insurance companies check your credit score before they set the premium on your insurance. They think that a high score means you might be a safer driver. It makes a lot of sense to play along with their rating game, if it means you’ll save money on car insurance.

Reason #4 Get more affordable life and health insurance. Many consumers don’t know that the premiums they pay for their life and health insurance are affected by their credit score. Insurance companies spend a lot of time and money trying to figure out which customers will make their business more profitable. And the insurers have determined that customers with low FICO scores have a harder time paying their monthly premiums. So, they reward customers with a better credit score by offering them a lower premium on life and health insurance.

Reason #5 Land a better job. You may be shocked to learn that more and more employers are doing credit checks on job applicants before hiring them. While the employers may get your credit report to verify information you put on your job application, what’s to stop them from seeing how you handle your financial affairs, too It would be a shame to lose out on a good-paying job just because you were late on a couple of credit card payments.

Many more aspects of your life are being affected by your credit score than you might have imagined. Raise your score, and you may well raise your standard of living through lower interest rates, a better job, and a more affordable lifestyle. But how can you repair your poor credit rating There are many options, ranging from credit restoration companies (some of whom are reputable and affordable) to do-it-yourself plans. You owe it to yourself to look at all the options, and then to take action.

Want to know the Secrets To Raise Your Credit Score up to 249 Points In 90 Days… and Get APPROVED For The CAR, HOME, Business Loans, and CREDIT CARDS You Deserve!

The Credit Secrets Bible will show you how!

Learn More About The Credit Secrets Bible Hard Copy Version With Audio CD

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What is your credit score? If you don’t know your credit score, it’s time to find out. In this article we’ll give you some very good reasons for knowing how you rate with creditors, and how to monitor your credit score.

First, a little background. Your credit score is based on information about you from companies that gave you credit in the past. They report on your payment history to the three major credit reporting bureaus, who then create a numerical score, sometimes call a FICO score (it’s named after the Fair Isaac Corporation).

You can think of your credit score like grades on a test in school. The higher your score, the better your credit rating. FICO scores range from 300 to a perfect 850. Anything under 700 is in need of some improvement. So why should you care?

Reason #1: A more affordable mortgage. A higher credit score will get you a lower rate on your home loan. Particularly in these days of tightening credit, banks pay close attention to your FICO score when you apply for a home loan. Just a 2% reduction in the interest rate on a 30 year fixed mortgage on a $200,000 home will save you nearly $100,000!

Reason #2: Lower insurance premiums. Many auto insurance and health insurance companies check your credit score before they set the premium on your insurance. They have found that people with a higher FICO score are less likely to file a claim against their policy. So, they reward customers with better credit by offering them a lower premium on life, health, and auto insurance.

Reason #3: A better job. It’s true. More and more employers are checking your credit report when you apply for a job. While they may be getting the report to verify the information you put on your job application, what’s to stop them from seeing how you handle your financial affairs, too?

So, many more aspects of your life are being affected by your credit score than you might have imagined. Raise your score, and you may well raise your standard of living through lower interest rates, a better job, and a more affordable lifestyle. Back to the original question: What is your credit score?

It’s easy to get a copy of your credit report. In fact, you are due a free copy each year from the three major credit reporting bureaus. Just log on to annualcreditreport.com (this is a web site supported by the credit bureaus). It is entirely your choice whether you order all three credit reports at the same time or order one now and others later. The advantage of ordering all three at the same time is that you can compare them. However, you will not be eligible for another free credit report for 12 months. On the other hand, the advantage of ordering one now and others later (for example, one credit report every four months) is that you can keep track of any changes or new information that may appear on your credit report. It is important to monitor your credit report, since it does change over time as your lenders send new information.

Note that your free credit report will not contain your FICO score. The three major credit bureaus (Equifax, Experian, and TransUnion) will be happy to sell you that piece of information, as will any number of other web sites. Shop around for the best deal, and don’t get hooked into signing up for a monthly service.

Want to know the Secrets To Raise Your Credit Score up to 249 Points In 90 Days… and Get APPROVED For The CAR, HOME, Business Loans, and CREDIT CARDS You Deserve!

The Credit Secrets Bible will show you how!

Learn More About The Credit Secrets Bible Hard Copy Version With Audio CD

If you enjoyed this post, make sure you subscribe to my RSS feed!