Is your credit score correct?

Here are 7 ways a good credit score can save hundreds of dollars a month:

1. A good credit score means lower home mortgage rates.

How much can you save? A 30 year, fixed rate mortgage loan of $150,000 with an interest rate of 5.72% costs approximately $870 a month. A poor credit score raises the interest rate to over 9% increasing the monthly payments for the same $150,000 loan to over $1,200 a month. A good credit score means you can save $330 each month or finance a more expensive house with the same income.

2. A good credit score means lower insurance rates.

Many home owners insurance, auto and life insurance companies set minimum credit standards for their policy holders. This means that consumers with a poor credit score have to pay more for less coverage. In addition, many automobile insurance companies offer 25% discounts for credit scores over 625.

3. A good credit score can help you get a job.

More and more employers run an applicant's credit report and take their credit score into consideration when trying to determine the type of person they are. Higher credit scores are equated to better integrity and character giving those candidates with higher credit scores a better chance of being hired.

4. A good credit score can get you loans faster.

The higher your credit score, the faster your loan is approved. According to myFICO®, The median credit score in the U.S. is 723. If, for example, your credit score is above 750, you may be instantly approved for a loan with the best possible interest rate. That means if you are buying a home, you have a significant advantage over other buyers because you can close your loan faster. Sellers always prefer buyers with high credit scores because their mortgage application can close in hours instead of weeks.

5. More credit is available to you.

A good credit score means more money in available at better rates. It also identifies individuals who are likely to perform well in the future. Lenders use credit scores to determine credit risk. The higher the credit score an individual has, the lower the credit risk to the lender so they are more likely to extend credit.

6. A good credit score can mean no utility company set-up fees.

If your credit report shows collection accounts for past due utility bills, you can be denied service. Also, if the utility company does agree to connect your service, they may require you to pay a larger deposit than other customers. Customers with particularly good credit scores may not have to pay a deposit at all.

7. A good credit score can mean no telephone or cell phone start-up fees.

Consumers with low credit scores who sign up for phone service may be required to pay as much as $500 before starting service. A consumer with a good credit score rarely has to pay any deposits for home telephone or cell phone service.

Improving your credit score can lead to favorable interest rates, higher quality health, home and auto insurance, and the best mortgage financing available. Lexington Law will work to remove negative, inaccurate, misleading or unverifiable items from your credit reports so you can begin to take advantage of the luxuries provided to those with higher credit scores.