The Importance of your Credit Score

Posted on June 24, 2011. Filed under: Joan Popp, NMLS #501065 |

In this day and age it seems everything revolves around having good credit.  That’s why it’s so important to understand and maintain a good credit score.  Credit scores are not only used by banks and other financial institutions but also by employers, insurance companies, landlords, cell phone companies and other businesses that deal with selling goods and services.  The higher your credit score, the better chance you have of buying that home you want and getting a lower rate on your mortgage loan.  Employers are starting to use credit reports to determine if a person is trustworthy for a job.  Landlords can check credit scores to indicate if a person will be likely to pay their rent.  Some insurance companies give rate reductions to customers with high credit scores.

Why do businesses rely on credit scores?  Because having a good credit score is usually the result of good financial management and responsible spending.  There are numerous factors that are used to determine your score.  Some of the most important items to remember to keep your score high are: 

1) Always make your payments on time.  This not only means your loan payments but also includes your utility bills, medical bills, etc.

2) Keep your number of debts low and at reasonable amounts.

3) Use your credit cards each month, but then pay them off each month, which will help establish a payment history.

4) Don’t over apply for credit.  Each time you apply, it is likely the business will do an inquiry on you and too many inquiries will count against you.

Your good credit rating will be the first step to obtaining your future dreams, whether it is a new home, a dream job, or more money in your wallet.  Talk to a lender at Denmark State Bank for more information regarding credit scores. 

To get your free credit report online, go to www.AnnualCreditReport.com or call (877) 322-8228.

Member FDIC|Equal Housing Lender

Advertisements

Make a Comment

What do you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: