A high credit score can save you hundreds of dollars each year…

In a shaky economic environment, a high credit score is more important than ever. Not only is your opportunity to get the best credit card and loan rates improved, but insurance premiums and even potential employers may be influenced by your ability to successfully manage and maintain your credit. Over the course of a lifetime, a good credit score could save you thousands of dollars on interest and fees. “Everything is negotiable, with the right credit,” says K.E. Varner, a former manager at credit reporting agency Equifax.

By taking a few simple steps, American consumers have the power to reduce their credit costs by hundreds of dollars each year. Using data provided by Argus Information and Advisory Services, a recent report from Washington Mutual estimates that U.S. consumers could trim credit card finance charges by $105 each year by raising their credit score by just 30 points. Here are some of the benefits you could see from a higher credit score:

• Interest Rates: Raising your credit score by just a small amount will result in huge savings when you apply for a mortgage, auto loan or credit card. The July 2007 Washington Mutual consumer credit card survey found that consumers would save a collective $20 billion in finance charges alone with an increase of 30 points.
• Insurance Policies: Credit scores are often reviewed by home and auto insurers to help determine coverage and premium costs. Insurers have found that there’s a direct correlation between higher credit scores and fewer claims being filed. This may explain why you’ll see better insurance rates with a higher credit score.
• Employment Opportunities: Increasingly, employers review credit reports and scores as a way of assessing job applicants. A high credit score is a reflection of a person’s character and ability to handle their finances responsibly. The irony of that opinion is that student loans can pack a negative whollop to  graduates’ credit scores.
• Utility Charges: Its not understood why or how a credit score affects consumer utility services. But that’s the way it is - gas, cable, electric and phone companies offer better plans and often waive hefty deposits for consumers with a high credit score.

Consumers who have responsibly taken care of their finances are not only rewarded with a high credit score, but enormous savings on interest and fees. Credit card companies and mortgage lenders look for ways to keep their responsible customers and may be willing to negotiate to retain that relationship. So, if your credit card rate is costing you, consider speaking to your current credit card representative before you take your business elsewhere.

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This entry was posted on Wednesday, August 20th, 2008 and is filed under: Credit News, Tips & Advice. Follow through RSS 2.0 Responses are currently closed, but you can trackback from your own site.