Sadly, we’re all judged by numbers– the number on a scale, the amount of numbers on our paycheck and even the number assigned to our payment history.
The three numbers assigned to you on your credit report can either help or hinder you. If your numbers are high, you’ll be eligible for better interest rates, which can save you money, but if they’re low, it could end up costing you… lots.
Did you know that your credit score affects your auto and home insurance rate or whether or not your will have to pay a deposit on your cell phone plan? Your credit score can even affect whether or not you get a job. That’s right, many employers now run a credit check on prospective employees.
If you’re wanting to clean up your credit or get on-track to being financially fit, the first thing you need to do is find out what’s on your credit report.
You can now check your credit report once a year, at all three of the main credit reporting bureaus, for free:
Don’t apply for new credit.
Pay more than your minimum payment, if you can.
Don’t max out your credit.
If your payment is going to be late, call your creditors and see if you can arrange a new payment due date.
Once you’ve paid off an account, don’t close it. Closing accounts will affect your credit/debt ratio.
Cleaning up your credit and getting on top of your finances is one of the best gifts you could ever give yourself. Best of luck to you!