You may be able to ask for and get a better rate on a home loan when you have good credit. "The more your score has improved," GOBankingRates says, "the better rate offers you'll receive."
While it's up to the lender to determine the specific interest-rate parameters attached to a home loan, for example, the difference of a few points on your credit score could add up. That's why personal finance expert Suze Orman suggests you aim for a score of 740 or above in order to get the best deal before you buy.
Overall, the higher your credit score, the better financial deals you'll get, whether you're buying a home or a car, renting an apartment or just going about your everyday life. That said, you don't "have to have a perfect score to get the best credit terms," Bankrate notes.
And no matter your score now, keep taking care of it. Be sure to pay your bills in full and on time. That means credit card bills and others that impact credit, too, including student loans. Details about your payment history, including late or missed payments, can stay on your credit report for years.
Keep an eye on your score by checking it regularly. Most financial institutions allow you to keep tabs on your score for free. And if you don't yet have a credit history, check out these tips on how to get started.
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