High Credit Score: How To Get Super Low Interest Rates

Having a high credit score is important when applying for new or more credit. Without a high score you can wave good-bye to all those items you hoped to buy with the other guys money. Of course, you can still get credit with a less than stellar record, but you would fare better if you can keep your rating high enough so lenders can take notice. A high score can put you in front of the line when it comes to applying for a credit card, a store card, or a consumer loan. Also, having a high score does dictate what interest rate the lenders will offer you. Or, in the least, you can negotiate a lower rate if they don't bother to mention it.

And many people may not want to mention it, but many more firms and industry groups now use your credit scores when deciding to sell you a product or service. For example, the insurance industry have long used credit information to fix your premiums. You might have a spotless driving record but if your credit is poor, you can face hefty premiums. The same goes for prospective employers. They don't base your salary on your credit record but some check it for inconsistencies. If you have a bad report, they might decide to pass you up in favor of someone else. After all, who wants to hire someone who would likely spend more time worrying about their financial mess, than doing the job they are paid to do. It is a sad commentary about the inhumane way employers treat prospective employees, but it is the reality of the modern day workplace.

This is often true for new workers entering the workforce. After spending four years in college and amassing a huge debt, many students may already have several credit cards. Some of these cards don't count for much when assessing credit information, but most students start off with a poor credit score. So even though they may have the best grades at school, they look like poor money managers. The result is a less than ideal credit rating to start off with, and the reality of higher than normal interest rates for any new credit.

Speaking of interest rates, the results of a joint survey by CFA and Providian make an important point. According to the survey American consumers would save collectively around $16 billion each year in finance charges just by increasing their credit score by 30 points.

A high credit score falls around 720 points but if it means greater bargaining power it is worth every point. The opposite is paying out much more than you need to if you don't manage your credit well. Take steps today to at least raise your credit score by 30 points. It is a good way to increase your wealth.

Fico Score >> Privacy Policy >> Disclaimer >> Terms Of Use >> About Us >> Contact Us