Why Bother? After all 6 in 10 Americans don’t know their credit score.
Your credit score may seem like a fairy tale number with no real impact but for the 4 in 10 who know, a higher credit score can:
- Lower interest rates (car, mortgage, credit card, etc.)
Did you know that the difference of ~1% of interest on a 30 year mortgage could save you tens of thousands?
- Approve higher credit limits
With a higher credit limit (assuming you spend the same amount) you decrease your credit utilization ratio (that handy how much you spend to how much you have on your credit limit). This ratio has a big impact as it’s nearly 30% of a FICO score calculation.
- Approve rental applications
Your credit score is used as a proxy to screen potential tenants as it signals to a landlord your ability to pay rent.
- Get you better rewards
All those cash back, travel point, etc. rewards cards require an excellent credit score and often come with pretty nice sign-up bonuses – double whammy.
That’s a whole lot of $s and convenience from one little number. If you’re unsure of your score check out these free resources:
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