Just how critical is a good credit score? It is a key factor in determining whether you qualify for a home loan and the interest rate you'll pay.
On a $150,000 home mortgage, a difference of just two percentage points can mean a savings of more than $70,000 in interest over 30 years. Yet a new survey by HSBC indicates that seven in 10 consumers don't know their credit score. And nearly half don't know what makes up their credit score.
HSBC offers these six tips that could lead to a higher credit score.
* Make your credit payments promptly.
* Pay utility, rent and telephone bills on time.
* Because errors occur, review your credit report annually.
* Pay off an account with a poor credit history.
* Close accounts that you aren't using, but avoid closing your oldest account.
* Carefully manage your credit account balances since your score is affected by the total credit used as a percentage of your total credit available.
To help close the knowledge gap, HSBC launched its "Your Credit Counts" financial-education program for a second consecutive year.
HSBC's "Your Credit Counts" Web site (www.yourcredit counts.com) offers a variety of resources to help consumers test their credit knowledge, better understand their credit report and assist them in managing their credit.
HSBC also has enlisted Tony Award-winning actress Phylicia Rashad and Emmy-winning actor Edward James Olmos to assist the "Your Credit Counts" campaign. "Many people say they don't know where to begin to learn about credit," said Rashad. "For them, education is the ultimate tool in helping make good financial decisions, and that's what www.yourcredit counts.com provides to anyone, anytime."
"Not only does the program help consumers understand credit, it can help them correct or improve their credit rating - and that gives them more and better financial options," added Olmos.
Through December 31, 2004, visitors to www.yourcredit counts.com can register for a sweepstakes to win a $25,000 grand prize as well as monthly prizes that include laptop computers. - NU |
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