Your credit score could be costing you thousands. Unless you pay cash for everything, including your house. For most people just a 20 to 80 point increase could mean the difference of a few hundred dollars per month.

A 660 score is about average. Add just 60 points to that and you have a top of the line credit score for most lenders and credit card companies. The difference between a 660 score and a 720 credit score could be a few hundred or more per month. More importantly it could be the difference between getting approved or not.

Mortgage loans- Your interest rate will be .25% to .50% higher. On a $200,000 mortgage that’s around $65 per month for thirty years.

Car loans - You will not get that 0% APR. Instead you will get around 8% to 12% interest. That’s around $140 every month on a $25,000 car loan!

Credit cards- You could pay double or triple in interest payments.

Second mortgage- 1.5% to 3% difference in your rate.

Most consumers do not realize how important their credit score really is. As an investor you probably know that you need a better score especially with the recent tightening of lending guidelines.

Here are some tips for improving your score.

  • Check your credit often directly with all of the three repositories. Go here for a free credit report
  • Know your score and get all errors corrected
  • Do not allow third parties to run your credit when shopping. Only apply when buying
  • Keep your credit card and equity line balances low. Do not get maxed out to your limits
  • Do not close old accounts with a long history
  • Make sure all creditors are reporting your high credit limits
  • Only use credit cards and equity lines for short term financing. Get a fixed installment loan for long term borrowing needs
  • Do not pay off old collections prior to applying for a loan. This can lower your score by bringing the event current

A twenty to eighty point increase is easily attainable for most consumers within a short period of time.

free credit report

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