You must have known by now that the higher your score, the more likely you are to qualify for loans and credit cards on the most favorable terms, saving you money. Your credit score is a major factor in your financial life. It is used by entities to measure the risk of granting credit.
If your credit history is not where you want it to be, then the Extra Debit Card might just be for you.
Apart from the Extra Debit Card, here are a few other methods you can use to increase your credit score.
Keep in mind that opening too many obligations probably won’t improve your credit score and, conversely, unnecessary credit can hurt your credit score. That is why you need to plan well when you are going to request and open a new credit obligation, lest the extra expense represent impossible debts to pay.
Always keep your credit card balances and other types of revolving credit low. Credit utilization is another important factor in calculating your credit score. Therefore, always keep your balances low, this indicates to financial institutions that you know how to manage your credits.
Remember that a good credit score can help you get better interest rates. It’s important to regularly check your credit report and credit scores. If you currently do not have a credit history, this may mean you have restricted access to obtaining credit. It is important to start building a credit score from products and small debts to generate information about your payment behavior.
So how does Extra Debit Card makes this process easier?
The Extra Debit Card does not require that you have a perfect credit score before getting one, and it works with any bank. To help increase your credit score, Extra sends the purchases you make in a month to the credit bureaus. This action is what helps you build a credit score.
Let us put the effect of your credit score in perspective. For this, we will be using data provided by Experian’s State of the Automotive
Finance Market 2020.
Let’s say you are buying a Toyota Corolla @$25,000 and you are paying back with 72 months.
With a credit score of 600
Interest Rate – 11.33%
Total Payments Made – $34,566
With a credit score of 725
Interest Rate – 4.21%
Total Payments Made – $28,333
If you do the maths, you will find out that with just a margin of 125 in your credit score, you can pay about $6,000 less.
