A good credit score is so valuable. Credit is a way for lenders to know if you’re a reliable borrower. The higher your credit score, the more you’ll be able to qualify for a loan – and, get a lower interest rate on your loan. A lower interest rate means lower monthly payments – and this can potentially save you hundreds of dollars each year.
So, how does one earn a HIGH credit score to benefit from all the lower interest rates and loan qualifications? Just THREE easy steps:
- Keep your credit card balance low – preferably less than 30 percent of your credit limit.
- Pay your credit card balance in full every month.
- Pay all your bills on time! Timely payment of your bills has a huge positive effect on your credit score.