What is credit score? It’s a barometer of your financial health. The reading of this barometer is used to measure your credit worthiness. Its a measure of how well you managed your available credit in the past. A good credit score will ensure the following benefits for you.

1. Lower mortgage rate and home equity loan rate
2. Lower car loan rate
3. Lower insurance premium
4. Better employability
5. Better acceptability as a renter
6. Better rate on your credit cards.

If we quantify all these, we are talking about saving 1000’s of dollars worth of saving in our life time. Credit score affects our finances. Whether you buy or rent, a good credit score enables you to save money either ways.  Below are few immediate steps you can take to build and maintain an excellent credit score.

Check your credit report

In case you don’t know, you are actually entitled to one free credit report every year. You can get it from TransUnion, Experian, and Equifax. These are our U.S. credit bureaus. Have yours printed and delivered into your doorstep.

The following is a guest post from Ross Jackson, a blogger who likes helping consumers understand the difficult terrain that is credit, debt, and finance. 

How Can a Credit Score Affect Your Finances?

Most individuals do not understand how a credit score can directly affect their financial life. This score is a number that helps a company decide if, you as a customer, are a good fit for their business model.

This three digit number is one of many elements that is looked at to establish whether a person may or may not be a risk to their business. Combined with other factors like employment history, income, and savings, a credit score will influence a lender to decide whether to lend you money.