Rule One

So let's begin. The first and most important rule to becoming financially successful is having good credit. The interest rate you'll pay for the money you borrow will be determined, in large part, by this three-digit number that's generated from the information in your credit report.
Most lenders have carved-in-stone rules about handing out the best terms, and those rules almost always place a major emphasis on your credit score. If their best rates are offered to borrowers with a score of 700 or higher and yours is a 698, those two points could cost you thousands of dollars.

According to http://www.myfico.com/, the consumer Web site of the Fair Isaac Corp. that created the FICO score (the most commonly used credit score), the interest rate difference between those two scores is one-half percentage point. A low credit score can definitely cost you thousands of extra dollars when it comes to paying off a home mortgage or loan. I personally have excellent credit so I can get a low interest loan to start up my own business, I can get a credit card without paying any interest on my purchases for up to a year, and my mortgage payments are so extremely low that I could probably buy another house in LA without any problems.

If you do already have a low credit score, there are 3 easy steps you can follow to rectify the problem:

1. Start paying your bills on time.

2. If you are already in severe debt, call your creditors and try to work out a payment plan to reduce your credit card balances, or seek a legitimate credit counselor. You can contact the various dept relief companies below to hep you get rid of your debt and improve your credit score. However, beware that paying off a collection account will not remove it from your credit score. It will stay on your report for seven years.
http://www.american-debtrelief.org/
http://www.edebt.com/
http://www.consumercredit.com/
http://www.repairyourbadcredit.com/

3. If you have the means, pay off the debt completely.

4. Make sure you aren't a victim of identity theft. Review your reports from all three credit bureaus for accuracy once a year.

Hope this helps! Please feel free to leave comments or make suggestions on how to improve my blog. Thank you!