Credit Awareness and Maintenance:

When you don’t take care of your credit, you are flushing money down the drain. When you don’t take care of your credit, you are throwing money away. Credit and financing go hand in hand as your credit rating determines how good or bad your interest rate will be. Higher interest rate means higher cost of borrowing which in turn means less money saved or put another way, more money to spend to make the purchase or lease. And in some extreme cases, credit is denied altogether, meaning that you miss out on that purchase or lease transaction.

How Do I Build or Rebuild My Credit?

Are you thinking of buying or making a major purchase using your credit? You are going to need great credit if you want approval from a reputable lender as well as the best interest rates possible. But if you’re worried that your credit may not be in tip top shape and may affect what you can buy, you can take certain steps to improve your score. Well, there are a couple of steps to follow to help you build it back up.

Here, the main key thing is that you actually need to find out your credit score. What limit, level or point are you building from? I essence, you need to know where you currently are, in order to know how far you have to go to build up your credit, making it better. That way you have a baseline and you know how much you need to improve in order to get the best rates possible. You can visit anyone of the credit establishments to get your free credit score.

Next, know that you’ll need at least a 660 credit score just to get approved by a lender without exorbitant rates. However, if you want to get the best interest rates and save the most money, you actually need a 720 credit score and above. So now that you know your credit score, let’s start working on it.

Now that you know your credit score, the next step will be to Check out your credit report card in general. Your credit report card is kind of like a snapshot of your entire credit report. It boils down your credit health to a couple of key components. That way, you can take a look at it and see what grade you got and what may have affected that grade. Knowing what may have affected your credit score means that now you know where you need to improve in order to better effect your credit score. Maybe you have too much debt, too many credit inquiries, maybe you’re just using your credit card too much. You want to take a look at your credit report card, see where you’re not getting the best grade you can that way you can start improving in those areas.

Don’t be overwhelmed by all the information about your credit. Make sure that you are in tune to what is going on with your credit because your financial health partly depends on it. You typically save money with better credit.

Now that you know from your credit report card what areas you need to improve on, your step will be to take the next couple of months to build up your credit score by taking certain proactive steps continuously. Whether, it’s paying off your debt, starting with the smaller debt or to use your credit card better. You have to always think about how you use your credit. You have to remember that everyday, your credit actions affect your credit score. Also, you have to remember that it is very easy to destroy or adversely affect your credit than it is to build it. It takes time to build your credit back up. Therefore in certain situations, you will to have to wait and it’s going to take a few months and in some cases even a few years in order to build up your credit score. Depending on what major purchase you are planning on doing, if you want to save thousands of dollars over the life of that purchase or lease, especially if you are thinking about a mortgage, building up your credit score is to your advantage and the best way to go as it helps lower your cost of borrowing.

So track your credit score and your progress and watch your credit score improve. In the end you will be better off. Get your free credit scores! ClickYourScores.com


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