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Credit Report News, Tips & Advice « Credit Reports > Credit Report News > You can save even on loans by checking your credit report and credit score

You can save even on loans by checking your credit report and credit score

By Faye Mergel
Published: Thursday, October 16th, 2014

People don’t usually consider saving by checking their credit report or credit score. Those two are of course related to money loans, banks and money lenders will be looking at them before they grant you a new loan. Conditions for your new loan will greatly vary on what is inside your credit report or credit score, the better they look the better your loan will be, therefore removing any mistakes and improving your credit score can be a way of saving money.

You can get your credit report free of charge from any of the major credit bureaus once a year. Be sure to check it and file a dispute if you find anything out or order. If you have been taking loans earlier compare your payment history with what is inside the report, it’s also a good idea to look for any late payments or missed payments that may have found their way inside. When you have done this you are ready to proceed with checking your credit score and doing all you can to improve it.

Your credit score is determined by many factors, most of those have a lot to do with your ability to repay your debts. This means that your credit cards and any other loans you may have will greatly influence it. First off, check your payment history on your credit cards, if you have a great debt there – for example 50% or more try to reduce it to somewhere between 10 and 20%, don’t try to erase it completely because this action doesn’t influence your overall score. If you have only one credit card your odds to increase credit score are slim.People with more than one credit card always have better credit score simply because they are paying off more than just one debt – if you happen to have only one card get another and start using it.

Your other credit or loans will also have great influence on your overall score. Unlike with credit cards the fewer you have the better your score will be. So, if you happen to have some other credit, goal should be to reduce the amount owned there. Also if you have been taking loan after loan your credit score will be significantly lower, even if you paid back all those on time. If you have been taking many loans before consider applying for a new one only if, and when you really need it.

In the end you may be wondering where the trick with savings on credits and loans is. The simplest answer is – exactly in your credit score. The better it is the better your terms for the new loan will be. You don’t want to take another bad credit and pay higher interest rates, get shorter repayment period and spend more money than you should. Fixing and improving your credit score takes more time than checking and fixing your credit report but in the long run you can even save on your new loans.

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