What is the value of your credit score? Do you know? Your credit score can open doors for you with the same clout you get from having money in the bank. And it can save you a lot of money over time.



I work as a Mortgage Loan Officer and I have seen the price that people pay for not maintaining their credit health. I see people pay daily in higher interest rates for all that they buy because they havent kept their credit score healthy.





Let me give you just a few examples.



Lets say you purchased a new home worth $150,000. If your credit score is not in good health then at todays rate you will pay $354 a month more for your house payment than you would have to pay if your credit score was healthy.



And if you did that for only two years and then you were able to refinance, because you had improved your credit scores, you would still have paid a total of $8496.00 more than the person with good credit scores. And, what if you had to pay this extra amount for the full 30 years of your loan, you would have paid $127,444 more than the person that started their loan out with good credit scores.



Think about what you could have done with this extra money had you not squandered it on an unnecessary expense.



The extra expense doesnt stop with just your house payment. Insurance companies will charge you more for your house insurance because your credit scores are not good.



Automobile dealers will charge you a higher interest rate if your credit scores are low. I was working with a lady on a home mortgage and during that process found that she was paying 24% interest on her car and didnt even realize it. After improving her credit score just 40 points she was able to get a new car and save $120 a month on her car payment.



Cell phone dealers will require a large deposit before you can have cell phone service if your credit scores are not good.



Credit card companies will not only charge a higher interest rate they will charge sizeable annual fees and may also require a deposit before issuing a credit card.



If you want to borrow money to start a business, send the kids to college or maybe do some real estate investing you will have a very hard time getting investors to extend you credit if your credit score does not deem you credit worthy.



It is difficult to get through life in this day and time without buying anything on credit. Neighbors no longer get together and build you a house. It is hard to walk everywhere you need to go. Cash is not accepted for internet purchases.



If you are a young person starting out, guard your credit score like it was gold. It will serve you well throughout your life.



If you are well into your life cycle and lifes circumstances has not allowed you to keep your credit score healthy then attack that problem with a vengeance. You can turn things around. You can restore the health of your credit score. It will be one of the best gifts you have every given yourself.