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Money Errors To Avoid (Shine)
Everyone makes mistakes, or so my mother tells me. But when it comes to making mistakes with your money, it can cost you.
Avoid expensive mishaps by being in the know, particularly when it comes to your credit score, home loan and rainy day fund:
Ignoring Your Credit Score
Your credit score has never been as important as it is now. It’s not just about qualifying for the best interest rates and terms on credit cards, auto loans, private student loans and home loans anymore. It’s about qualifying at all.
For example, just a couple months ago, you needed a 580 credit score to qualify for home financing. Now, your score needs to be north of 620. And that’s just to get your foot in the door. To qualify for the best mortgage interest rates and terms, you’ll need a 720, according to Bob Walters, chief economist for Quicken Loans.
Another common money misstep is credit score procrastination. If you wait until you need to borrow money to get up to speed on your credit, it may be too late. Making big improvements to your credit score can take many months depending on your situation.
Luckily, it’s never been easier to access your credit. With new sites like Quizzle.com, you can get your hands on your credit report and score for free, no strings attached. Plus, credit improvement tools are now available online to help you make improvements so you’re in a good spot should you need to apply for financing.
