Your credit score can either save you money or cost you money. According to myFICO, a 100 point difference in your FICO score could mean over $25,000 extra in interest payments over the life of a 30 year mortgage on a $300,000 home loan.
Thus, if you have a low credit score, it may be in your best interest to take proactive steps to boost your score to the higher scale – preferably above 740 mark as those with a score of 760 – 850 are more likely eligible for the most favorable interest rates.
What can you do if you are on the lower end of the credit rating range? And how can you raise it up to avoid paying higher interest rates or having your application rejected outright?
This video below offers some excellent tips on how to raise your FICO score. It is a short video worth watching if you care about your score.
Although by law, you're entitled to receive a free copy of your credit report annually from any of the 3 credit bureaus - Equifax, Experian, and TransUnion, this free report will not reveal your actual credit score.
To view the actual score that the lenders are seeing, get your score (plus 3 in 1 credit report) from creditreport.com for a free trial.