Checking Your Credit Score Regularly Is The Key To Good Credit

Making sure your credit score is being reported correctly is imperative to successfully utilizing your credit to your maximum its benefits! The last thing you want to run into when you need to use credit for a purchase is to find out that something  is dragging your score down. Being aware of your score can save you THOUSANDS of dollars in long term interest and months of time as it can take anywhere from 30- 90 days to get some small issues corrected on your credit report. According to the Fair Trade Commission, 1 in 5 Americans is showing a material discrepancy on their credit report. That comes out to over 5 MILLION reports that are incorrect at any given time!

A difference of 10 points can mean a different rate for borrowers. This can translate into THOUSANDS of dollars in price difference. For instance: A new car purchased for $25,000 with a 72 month loan would be $28,573 at the end of the term at 4.5% interest. This rate would be available to an individual with a mid to high 600 FICO score. In contrast, that same vehicle purchased with an interest rate of 6.5% would cost the borrower $30,258 over that same 72 month term if he or she was in the low 600’s or under.  That being said, they may have something as simple as an incorrectly reported medical debt showing on their report.

With that savings you find, you could pay down some of your higher debts more aggressively or put more towards your savings monthly. Knowing this could benefit you incredibly in the long run! Check your scores like I check my weight, cautiously optimistic and but well aware that I can take steps to improve it!

Cheers!