You want to buy a new car and you need a loan. Well, your credit score is more important than ever in deciding how much you pay.
A quick example - you're buying a used car for $25,000.
Nerd Wallet estimates a bad credit score of 580-629 would have you paying 29% interest.
You'll end up shelling out a little more than $29,000 for that $25,000 car.
If you have an excellent score of 720-850, the interest rate is 11%, saving you $2,500.
2 wants to know found ways to improve your credit score.
The best way to improve your score is to make your everyday payments like utilities, mortgage, credit cards on time, consistently.
Keep paying down your debt. Make sure the amount you owe is manageable compared to how much credit you have. You don't want a lot of accounts with high amounts outstanding.
And don't close all your credit cards. That can hurt your score. But also don't apply for multiple types of credit within short periods of time. That might trigger red flags for lenders who might worry why you're trying to borrow so much right away.
(© 2016 WFMY)