Not familiar with credit scores? They're three-digit numbers compiled by credit reporting agencies (CRA). The most commonly used is the FICO credit score and ranges from 300 to 850. The median score in America right now is 723.



The higher your FICO credit score, the lower your interest rate when you purchase a new vehicle.

Two consumers purchase the same new-model car for $18,000 from a car dealer. Both buyers apply for a 36-month loan.

? Buyer A's 710 credit score nets him a 7.328% APR loan

o Monthly payment: $558

o Total interest payments: $2,106

? Buyer B's score of 510 locks him into a 13.378% interest rate

o Monthly payment: $610

o Total interest payments: $3,952

Obviously, the credit score made a difference: Buyer B pays $1,846 more than Buyer A for the same car.

A lower credit score means a higher final price tag when buying used cars.

Another two consumers are buying used cars from a car dealer. Car cost: $42,000. Loan term: 48 months.

? Buyer A's 722 credit score ensures a 7.063% APR

o Monthly payment: $1,007

o Total interest payments: $6,335

? Buyer B's 622 score means an interest rate of 14.904%

o Monthly payment: $1,167

o Total interest payments: $14,009

A huge difference?$7674?same car, same car dealer!

Reap significant savings on major purchases by raising your FICO credit score.

Getting on the path to financial health does not have to be difficult. All it takes is bit of know-how and commitment. Here are some steps towards self-help credit repair:

1. Know your credit score.

2. Make sure to fix any errors that appear on your credit report.

3. If your score is low, make the commitment to improve it.

You can raise your FICO credit score with an effective self help credit repair program.

Raise your credit score by paying bills on-time, every time. Financing a new car purchase or buying used cars is another method of self help credit repair.