NDSU Extension Service - Ramsey County

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Help from Your Credit Score

Help from Your Credit Score

            A strong credit score can insure that not only will your loan application for a home, car, college loan, etc. be approved but that you will be able to save more of your hard-earned dollars and has a few other benefits also.

            A good credit score can save a person thousands of dollars over the lifetime of a loan or mortgage by helping them secure a lower interest rate.  For example, let’s say your monthly payment on a 30-year fixed-rate mortgage of $250,000 is $1,077 when you have a credit score higher than 760. Now that that same loan amount of $25,000 for someone with a credit score of 680-699, and the interest rate and payment moves up to $1,133. Over 30 years, that difference adds up to more than $20,000!

            A change in your credit score may be an indication of other problems.  If your score dips but there have been no significant changes in the way you handle your finances, then it may suggest that you are the victim of a credit report mistake, or worse, identity theft. If you aren’t monitoring your scores, you might not know that there’s an issue until it has wrecked your credit.

            Employers view favorable credit reports as favorable to your potential job performance. Employers cannot obtain credit scores; but they can request credit reports. The information that goes into calculating a credit score is the information in your credit report, so the two are closely related. Nearly half of employers check credit reports for at least some applicants, so staying on top of the information in your reports can be helpful if you are looking for a new job.

             You can monitor your credit reports for free from each of the three major credit reporting agencies once each year through https://www.annualcreditreport.com.

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