Are you thinking of purchasing a house or a brand new car? If yes, then you are probably going to borrow money to buy those expensive things. Therefore, your credit score will be a very significant number to fulfill your dream house or car.

There is a great possibility that you will get approved for home and auto loans because they are classified as secured debts. Lenders, more often, will not get in your way in purchasing home or car. The simple explanation is that, secured debts have collateral in exchange for the payment that you cannot make. There is still a great need to improve your credit score quickly because the interest rate that you will pay for the cash you borrow will be decided by the three-digit credit score. These numbers are calculated complicatedly from the items listed in your credit report.

Most lenders follow certain rules in providing the best possible terms for you. The rules they employ will always have a major importance on your credit score. For an instance, borrowers having credit score of 700 and above are a golden score for their best rates and they offered it to them. If you have a score 698, the two points below 700 can cost thousands of dollars in you. You should remember that the difference in interest rate between the two scores is approximately one-third of percentage point. If your credit score is below a 660 mark, expect that the interest rate will increase by another 0.81 %. You can say that as your credit score goes down, the interest rates of most loans will go up, and hence improving your credit score is really necessary to have your dream home or car at a very low interest rate.

How will you improve your credit score quickly? The mantra to have that ideal score is by paying all your bills and debts on time, keeping your account balance to a minimum, and taking out only credits that are new and really needed. You must remember that you should do those simple tips as faithfully as you can. Also, you must repair any inaccurate items in your credit report. Keep in mind that negative items in your credit report hurts your score badly so fix them. If you have already paid any unpaid items in your report, exercise your right to dispute it and make the bureau alter it with the correct items. This can boost your score by 20+ points. In no time, maybe days, weeks or months, you can have that ideal score. Improving your credit score requires effort, persistence and time form you. As you continuously do it, lenders will see it positively as you are being cautious and conservative about your credit.

Aside from the above tips, another important factor is by shopping thoroughly if you are looking for a mortgage. You should be keen in looking for the lender that will offer you the best possible interest rate for a particular credit score.