Posts Tagged ‘increase wealth with your credit score’

Build More Financial Security And Increase Wealth With Your Credit Score

Your credit score can help you increase your wealth and build better financial security. In comparison to those with poor credit history, people with higher FICO score are rated as safe consumers by finance companies, auto lenders, credit card companies, banks, landlords, and even by utility service providers and employers. If you want to strengthen your financial condition and credit worthiness, you must invest some serious efforts with proper planning and maintain a credit score of at least 750 points; the higher, the better. Anybody who is serious about achieving a healthy financial life must be well aware of what a crucial role credit scores play in this regard. They must know how to achieve better score and maintain the same. Besides that, when it comes to building wealth, it is also very important for you to implement strategies to protect your important financial data from being hacked. It may be a nice idea to sign up for a credit monitoring service, as this way, whenever some changes occur in your credit report, you will get the alert message on your mail or on your mobile.

Mortgage

In order to increase your wealth with your credit score, you can start by contacting your mortgage lender and requesting them to reduce the interest rate. The mortgage market is very competitive out there. You can tell your lender that you are being offered better rates from other companies because of your better credit score and that you are considering refinancing your mortgage loan. This can work as a good negotiation technique and they are likely to agree to reduce the rates for you. A lower rate on your mortgage program can save you a substantial amount of money, which can be anywhere between $500 and $1000 (as an average).

Auto Loan

When it comes to increasing your wealth with your credit score, you can use the similar strategy for auto loan also. You can contact your lender and tell them that your FICO score has improved significantly and you expect them to make the auto loan more affordable for you. Tell them that you have been contacted by other auto finance companies and that they are offering you better deals where the monthly payments are much lower as compared to what you are currently paying and that they do not even require you to extend the term. Many lenders try to make consumers a fool by lowering their monthly payments while increasing the loan term at the same time. If you do your calculation, you will find that paying a lower monthly installment for a longer period of time actually can cost you a lot of extra money in the long run. Therefore, be firm in your negotiations. Having a high credit score is a great weapon when it comes to negotiating such deals. Lowering the monthly payments on your auto loan without extending the repayment period can easily save you around $50 per month.

Credit Cards

If your credit score is above 750 points, you must use it in your favor. A high FICO score is the ticket to increased wealth. The third step is to contact your credit card company and inform them how your FICO score has improved significantly in the last few months and that you deserve a reward for the same. The interest rates on credit cards are usually very high as compared to the rates charged on conventional loans. This is your opportunity to negotiate a lower rate with your credit card issuer. If they do not agree, you always have an option to switch to another company. Be firm when you tell them that you like to be their customer only if they lower the rates and make the terms more favorable for you. However, here it is very important for you to keep in mind that credit card companies usually do not entertain such requests immediately. The process may take anywhere around sixty to ninety days. So, if you do not get a favorable response immediately, do not get upset and start closing your accounts. Such activities may actually damage the health of your credit report. So, have some patience; give them some time; if things still do not work, you can switch to another credit card company that is offering you a better deal. The lower rates on multiple credit cards can save you a whopping amount of money every month.

Auto Insurance

You can also use your credit score as a weapon to negotiate a lower premium on your auto insurance policy. Request them to lower the rate because your FICO score is much better now and that it is only improving with time. If the insurance company does not entertain your request, you must shop around. It wont take you long to find another company that is willing to offer you an auto insurance policy with lower rates on better terms. This strategy can again save you hundreds of dollars every year.

As you can see, if your credit score is a superior one, you can use it to increase your wealth (by cutting down the cost on loans and insurance policies) and achieve better financial security. But make sure, you continue your efforts to maintain and protect a healthier credit score.


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