This week’s Real Estate 101 deals with credit scores.
What is a credit score? It’s a measurement used by lenders, credit card companies, insurance companies, banks, etc to rate your financial stability.
An Excellent score means that when you have borrowed money, you have paid it back in a timely fashion and you don’t max out your cards. It also means that you pay your monthly bills (like utilities, cell phone, etc) on time, and don’t overdraw your checking account regularly.
If your score needs some improvement, there are steps you can take to repair it. Paying all bills on time is a good start, and making sure your bank account never gets overdrawn is a good second step.
Why is a good score important? The better your score, the lower the interest rate you can get when you do borrow money – and often the lower your insurance payments will be. Borrowing money at a lower rate means you can borrow more money for the same monthly payment -and if you are looking for a new home, that can make a HUGE difference!
Learn more about credit scores here