How Important is Your Credit Score

Thur, 04 Sep, 2008

Financial Expert Aaron Maguire joined us in the studio with advice on credit scores and what to look for in a credit report.

Aaron, is your credit score that important?

YES! We used to think that the credit score was only looked at when we applied  for a mortgage for a home. Your credit score has to do with just about everything now. Your credit score is just a number that reflects how likely you are to repay our debts. The number will range from 850 to 300, with 850 being amazing and 300 being a wake up call.

When is your credit score typically used?

Life Insurance: A low score can exclude you from a top-tier rating. Home and Auto Insurance. A low score can increase your rating or you could be denied insurance. EmploymenT, most large companies are running background checks which usually includes your credit score. HousinG, If you rent a home, chances are that your landlord will ask you to run a credit check. Bank Loans. Your credit score is the biggest factor in determining your interest rate

What can we do to maintain a high credit score?

Make your current payments on time, current non payments of debt will lower your credit score dramatically. Close unnecessary lines of credit if you don’t use them. Refrain from opening new accounts. Keep your balances low. If you are in a little over your head, call the credit card companies and explain your situation and many times they will work with you.

Check your credit score every three to six months to check for errors.

For more financial related information visit www.reliancewealth.com or e-mail Aaron with questions you might have.

Source: http://www.ksfy.com/