Are you looking to make a big purchase soon? Move into a new place, or take out a new line of insurance? Your credit score will be called into question. A credit score is a numeric expression of your creditworthiness. It takes into consideration factors like how often you pay your bills, your track record of paying off items in full and whether you’ve been bankrupt.
A low credit score can make it difficult to move forward in life. Loan officers may issue a higher interest rate on a loan given to a person with bad credit, resulting in much higher interest payments. A good credit score comes in handy when you want to make big moves, like securing a mortgage. Read on to find out more about credit scores and how you can improve yours!
In the past decade, average credit scores have risen around ten points. That’s a great sign! People are becoming more empowered to manage their finances. Credit scores are extremely important when you want to make big life changes. It’s a nice feeling to apply for a mortgage and have it be approved without a question, due to your good credit score.
You can keep your credit score high by making small purchases with your credit card, never hitting the balance, keeping old accounts open and being cautious when opening new ones. These tips will ensure you look stable and trustworthy to creditors. You’ll be free to move into that new home in no time!