A good tactical move to saving more money is to make sure you work on raising your credit score.
A higher credit score is the secret weapon that gives you the opportunity to save money by having more leverage and negotiating power when applying for new loans.
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Usually, the higher your credit score, also known as your FICO score, the lower the interest rate you’re offered.
With a higher credit score, you have more bargaining power if you’re looking to rent an apartment or purchase a new home.
Your Secret Weapon to Saving More Money
Higher credit scores can allow you to save money by not needing a security deposit on cell phones and utilities, or a minimum security deposit.
Get a Copy of Your Free Credit Report
The 3 main credit bureaus are Equifax, Experian, and TransUnion.
Each credit agency offers you a free copy of your credit report every 12 months.
Get your free annual copy at annual credit report from each of the 3 credit bureaus so that you know where you stand.
It is a common fact that mistakes may be listed on your credit report.
Check each credit report and fix any discrepancies you may find.
After you dispute any errors, be sure to get another copy of your credit report to ensure the error has been removed.
Using your credit cards (and paying them off) is a great way to build a credit history if you don’t already have one.
Just be sure to watch your spending ratio on the card by maintaining a ‘credit utilization ratio’ that’s less than 30% of the card’s spending limit.
For instance, if the credit limit on your card is $1,000… 30% of that is $300.
So, work on not having a balance over the ratio of $300 on that card.
Find more on credit utilization ratio’s are here.
Be aware of the date your credit card company submits your balance to the credit bureaus.
Give them a call if you’re unsure.
Why? Let’s say they report balances on the 5th of the month, but you pay in full on the 6th.
Your credit report will still reflect that you are carrying that balance, although you’ve paid it off.
Another way to raise your credit score (and a great financial practice) is to pay off your credit card balances monthly.
Paying off your credit card balances monthly helps to keep your overall credit balance ratio lower and increases your credit score.
Have patience when working to increase your credit score.
It can be a slow and steady process.
With continual consistency in paying your bills on time, watching your credit card ratios, and checking your credit report for discrepancies, you’ll see your credit score rising.
What tactics have you used on raising your credit score?
Share it with us in the comment section below.
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