Your credit score is one of your most important assets. It is a significant financial indicator that can influence various aspects of your life. It should be treated with care because it impacts your overall financial health. Here are some things that your credit score can affect:
Borrowing Power: Lenders, such as banks and credit card companies, use your credit score to determine whether to approve your loan or credit card application. A higher credit score usually means you're more likely to get approved for credit and may qualify for better interest rates and terms.
Interest Rates: Your credit score also affects the interest rates you're offered. Higher credit scores typically qualify for lower interest rates, saving you money over the life of the loan.
Insurance Premiums: Some insurance companies use credit scores as a factor in determining insurance premiums. People with higher credit scores may receive lower premiums, as they are seen as less risky to insure.
Rental Applications: Landlords may check your credit score when you apply to rent a property. A higher credit score can increase your chances of being approved for a rental and may even help you negotiate better rental terms.
Utility Services: Some utility companies may check your credit score before providing services. A good credit score may help you avoid paying a security deposit or qualify for better terms.
There are ways to raise your credit score. Pay bills on time. Lower your credit utilization ratio by lowering the percentage of your credit limit you are using. It is recommended you use no more than 30%. Several ways to achieve this include paying more than the minimum amount due, asking for credit limit increases, and thinking twice before closing a card. Also monitor your credit to confirm all activity is yours and not someone stealing your identity. Know the difference between hard and soft inquiries. Soft inquiries do not impact scores. Soft inquiries include reviews of your credit file and existing accounts as well as pre-approvals, opening a bank account and getting an insurance quote. Hard inquiries do affect your score. These actions include applying for credit cards, requesting credit limit increases, and how recently and how often you applied for loans and other lines of credit.
For more information on how to raise a credit score, consult with a financial planner.
Thank you for joining the MMBB mailing list. You will begin to receive information soon.
Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
You will be linking to another website not owned or operated by MMBB. MMBB is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by MMBB of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from MMBB.
If you “Proceed”, the link will open in a new window.
Back to Top
Next