Ready to Raise Your Credit Score? Start Here!

What’s your credit score? When was the last time you checked it? If it’s low, you may be facing some extra loops and hurdles that could certainly be avoided it was higher. Unfortunately, your credit score is one of the most important numbers in your life, since it signals to the financial world how reliable you are. A high score means lenders will vie to loan you money at the best rates.

Make some mistakes such as paying bills late or not at all and your low score means you can expect to pay thousands or even tens of thousands of dollars in additional borrowing costs. And if you rack up chronic late payments or bankruptcies, you might not be able to borrow at all.

Nearly 40 percent of U.S. consumers are graded “exceptional” or “very dependable” by Fair Isaac Corp. (FICO), the largest provider of credit scores. The FICO score scale ranges from 300 to 850. The average score in the U.S. is 695.

To qualify for the best mortgage rate, you’ll need a score of at least 740. The best deals on auto loans go to borrowers with scores higher than 720. But don’t panic if your score isn’t on the high end of the scale. You can improve your credit score over time although doing so requires discipline and focus.

Factors that affect your credit score 
Many things can affect your credit score. Simply shopping for a mortgage can drop your score by 20 points for a few months. That’s because the lender will make a “hard inquiry” on your

What’s your credit score? When was the last time you checked it? If it’s low, you may be facing some extra loops and hurdles that could certainly be avoided it was higher. Unfortunately, your credit score is one of the most important numbers in your life, since it signals to the financial world how reliable you are. A high score means lenders will vie to loan you money at the best rates.

Make some mistakes such as paying bills late or not at all and your low score means you can expect to pay thousands or even tens of thousands of dollars in additional borrowing costs. And if you rack up chronic late payments or bankruptcies, you might not be able to borrow at all.

Nearly 40 percent of U.S. consumers are graded “exceptional” or “very dependable” by Fair Isaac Corp. (FICO), the largest provider of credit scores. The FICO score scale ranges from 300 to 850. The average score in the U.S. is 695.

To qualify for the best mortgage rate, you’ll need a score of at least 740. The best deals on auto loans go to borrowers with scores higher than 720. But don’t panic if your score isn’t on the high end of the scale. You can improve your credit score over time although doing so requires discipline and focus.

Factors that affect your credit score 
Many things can affect your credit score. Simply shopping for a mortgage can drop your score by 20 points for a few months. That’s because the lender will make a “hard inquiry” on your