Why clean up your credit score?
If you are not currently in the market for a new home or shopping for a new car, you may think that taking the time to improve a low credit score is not a priority. However, there are other important reasons for improving your score. Many organizations, including credit card, mobile phone, insurance and utility companies, all look at your credit score for a variety of reasons. Even a potential employer may pull your credit score when you are applying for a job. And with credit now tighter than ever, there is no time like the present to get your credit report in the best shape possible.
Credit scores are a "quick look" to determine how others will view your ability to pay bills and pay them on time. Lending institutions view it as a picture of how you manage your finances and determine your cost of borrowing based on your score. The lower the score, the higher the interest rate for your home, car, credit cards, and insurance premiums. You could be giving away hundreds of dollars and more each year in unnecessary fees.
Improving your credit score puts you in a better situation when negotiating a loan. The higher the score, the more the lender will want your business. A FICO® Score of 620 or lower can result in the highest interest rates available, or may prevent you from securing a loan at all. On the other hand, with a score of 760 or higher, you should expect to receive the lowest rates available. Improving your score will arm you with the tools which may allow you to renegotiate credit card interest rates and insurance premiums. Although these companies are not required to lower your rates in accordance with your credit score, it is certainly worth the effort to try.
Paying your bills on time and paying off your credit cards each month will improve your credit score, however you may also find your credit score is low due to errors on your report. Disputing these errors can be a time-consuming and frustrating process, yet necessary to your financial well-being. You can work to fix errors on your report on your own or you can enlist the help of an experienced credit repair organization like Lexington Law. When signing up with Lexington Law, you will be taking advantage of the same credit repair services that have helped over 1/2 million clients in the past 20+ years.