How your Credit Score May be Stealing your Money

Burglars and purse snatchers have nothing on your credit score!  A low credit score can be stealing money right out of your pocket every month, in terms of your mortgage, car, and credit card loans.  This can add up over time to hundreds of thousands of dollars.

Let’s take a look at how this breaks down:

The Mortgage loans:  For the sake of the argument, let us say you have a 650 credit score and you buy a 0,000 house with a 30 year fixed rate loan.  You are going to have to finance it at a rate 1-2% higher than the person who is rocking a 750 credit score.  Over the course of 30 years (360 payments) this difference can add up to be around a whopping ,000!

The Auto Loans:  the average consumer in the United States trades cars every 5 years. Based on this estimate, a person who buys a ,000 car with a 650 credit score will pay approximately 00 more for EACH CAR than the person with a 750 score.

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The Credit cards: a person with a 650 score has probably had some late payments on occasion and may have maxed out their credit cards. As a result, they will not get the great terms and plentiful options that a person with a higher score will enjoy.  The average household carries 00 in credit card debt (Yikes!).  If we assume this amount, a person with the 650 credit score will pay 2 more in interest per year than a person with the 750 credit score.

Gulp.

The Result: So, if you have a 650 credit score, the following numbers are how much your credit score will steal from you over the course of 40 years time:

Mortgage: ,000

Auto: ,000

Credit Cards:  ,000

Total amount the 650 credit score has stolen: 4,000

The figure would be much larger if this money had been invested in a mutual fund.  At a 6% rate, this amount of money would have grown to about half a million dollars.

Remember, protect yourself! Lock your doors, lock your windows, don’t talk to strangers, and keep that credit score high!

Coming soon! Tips on some easy steps to take to make sure you have a top notch credit score.

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Question by Danielle: how long will it take me to get from 505 to 650 credit score?
I am tring to get my credit score to 650 or higher….I just bought a new car with my score a (0). about 6 months ago but the bank ran my credit and it was a 505 I am just curious how long it will take. thanks
within 7 months I got it up to 505 from a 0.

Best answer:

Answer by purplemonkeydishwasher_in
That depends…have you recently won the lottery?

But seriously, if you make good money, pay your bills on time, and start making up on old debts…I would say 2-7 years, depending on your specifics.

Know better? Leave your own answer in the comments!

Got A 650 Credit Score? That Is Not Good Enough These Days. Find Out How To Improve It Now!

If you have recently obtained your report and found that you have a 650 credit score, you may be worried and perhaps even slightly confused. Why does it matter what the score is? Which credit bureau should you believe? What factors influence your result? Should you even be concerned?

Why does it matter what the score is?

When a new lender looks at an application for credit card debt, credit score is one of the factors they will use to assess whether to lend the funds in the first place. If they decide to grant the facility, your report will influence the credit limit and interest rate you get charged.

The higher the score the lower the interest rate you will pay and you may be awarded a higher borrowing facility. But it is not just credit card applications that it affects. When you come to renew your auto insurance or your home insurance, your insurer will also look at your credit score and may increase your premiums if he perceives you to be a higher risk than someone with a higher score.

Which credit bureau should you believe?

Your Experian credit score will be slightly different than the Transunion credit score which again will differ from the Equifax one. This is partly because there is no one defined way to calculate this figure and partly because all three credit agencies use slightly different information to compile your credit report. You are best working on an average of the three scores. Anything you can do to increase your rating will have a positive effect on all three bureaus.

What factors influence your result?

Before you can think about raising it, you need to know what factors affect it. The score itself is based on a lot of factors but the ones that seem to have the most influence are

Payment history – you need to make sure that the reports filed are accurate as often mistakes are made. It is estimated that this alone accounts for up to 35% of your score so it is important it is correct.

Amount you owe compared to the credit limits you already have – if you are maxed out on your credit cards, your rating will suffer. So try to get those balances down. It is suggested that you keep them to less than 35% of the available credit which is easier said than done!

Number of credit applications – the more applications for borrowing you submit the more your rating is going to be adversely affected. Don’t apply for any new borrowing unless you really need it and be selective who you apply to i.e. pick the lender with whom you have the most chance of success.

Should you even be concerned?

Yes, yes and yes. Your credit file has an impact on various areas of your life. You can improve it if you follow the proper advice. Steer clear of any “experts” who want to charge you fees for fixing your report. It is easy to do yourself and you need all those extra dollars to get rid of the debt once and for all.

www.650creditscore.org What can you do it you have a low credit score?

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Question by chefrstephens: I have got a 590 for a credit score what can I do to improve that quickly?

Best answer:

Answer by deedlebay
Nothing will improve it quickly. It takes time. Don’t be late on bills. Pay items you might already owe.

Add your own answer in the comments!

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The Significance Of Improving Credit Score

Having a good credit score means everything in today’s business world. It is something that you should have in order to live life with comfort. That is why lots of individuals work hard in improving credit score and prevent them from plunging in to a bad credit rating score. But how to improve credit score? What are the benefits of having a good credit rating?

On a primary note, a good credit score can elevate your chances of getting the loan you apply for and secondly, it will help you get competitive jobs and programs that will require good credit score. These are the two main reasons why you need good credit score. You need to strive in improving credit score.

But, if you are plagued with bad credit score in the past years, you are now asking how you can get good credit score again or how you can improve it. It is essential to understand the fact that if you have a bad credit score, you will need to repair it as soon as possible before your credit score becomes much worse.

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Improving credit score will need you to have patience and also a little luck. It is something that you should perform in order for you to live life ideally and also a little easier for you and your family. By improving credit score as soon as possible, you will never miss out on any more huge opportunities that will cross your path in the coming days.

Before you go on and begin improving credit score, you first need to realize what credit is all about. You have to know how it can affect you living. For instance, if you are in need of a loan, lenders will review your credit rating to conclude if you can be approved for the loan. A good credit rating will ensure the lenders that you pay your loans on or before the due date and thus, will ensure them that you will be able to pay the loan you are applying for. The same applies when you are to apply for a credit card.

Now that you know what it means to have a good credit rating, the next thing you have to do is to find if you have a good credit rating or not. Surprisingly, just few people know if they have a good credit rating or if they have a bad credit score. To know about your credit score, you can just consult for it in various credit reporting companies. They will be able to give you with a numerical indicator of how much your credit rating rates. Also, these companies can help you in improving credit score rating.

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