Consumers can easily boost their credit scores by avoiding some of the fallacies surrounding the extremely convoluted manner in which credit scores are tabulated.
Each of the three credit bureaus uses its own formula and guards its methods closely, but consumers should not find themselves in a conundrum when they are examining their strategies on paying off credit cards and other bills.
Consumers reap many rewards when they raise their current credit score, because higher scores mean shelling out less money in interest, which can yield thousands of dollars in savings. A high credit score also means consumers receive a lower interest rate for credit cards, auto loans and mortgages, and the benefit extends to lower rates for auto and home insurance premiums.
For a quick gauge of where you stand, here’s a quick rundown: a score of anything below 620 ranks as poor, 620-699 is fair, 700-749 is good and anything over 750 is excellent.
Check out your credit reports from Equifax, Experian and TransUnion at least once a year and examine them for errors. Consumers can access credit reports annually for free at www.annualcreditreport.com.
Paying Your Bills Is 35% of a Credit Score...