Offered the opportunity, would you give yourself a raise? You could do it and you don’t even need to ask your boss for permission.
Just pay more attention to improving your credit score and see how quickly it affects your bank account.
At the low end, you will bank thousands of dollars by raising your score. At the high end, if you upgrade from a poor to excellent score, you could save hundreds of thousands of dollars!
“That’s the thing, too many people don’t realize the impact credit scores have on the financial contracts and services they use throughout their lives,” Anna Lusardi, distinguished scholar and professor of economics at George Washington University said. “Improving your credit score enough so you get a 1% better rate on your mortgage saves thousands over the life of the mortgage.
“Knowing your credit scores – and how to improve it – is one of the most important things you can do to improve your financial life.”
Credit scores are the great mystery of American finance because while most consumers have heard of them, few understand just how much financial clout a good credit score carries.
And what a wallop to your wallet a bad credit score is!
Almost one-third of the 220 million Americans with a credit score, fall into what is considered the “poor score” category. That means 68 million people with a score of less than 600 on a scale of 300 to 850. By comparison, 22% are in the “excellent” category, which is 780 or higher.
The difference? Someone in the poor credit score category often will pay 50% or more to borrow the same amount of money as someone in the excellent category.
“Bar none, credit scores are the most influential factor in getting competitively priced credit,” credit expert John Ulzheimer, a former employee at FICO and Experian credit bureaus, said. “If you’ve got solid scores – 750 or higher – lenders will be falling over themselves to offer you great deals on loans and credit card products.
“If you have lower scores, it means fewer and more expensive options.”