How’s your credit score looking?
Your credit score can be anywhere between 300 and 850, and while only a measly 1% of consumers can boast perfect credit, getting a near-perfect credit score is more achievable than you probably think.
However, you might ask yourself, “Why should I bother getting an excellent credit score” or “Is the hassle of fixing my bad credit really worth it?”
The short and straightforward answer to that is a resounding “Yes.” You have every reason to improve your credit score, and these four points explain why:
It’s everyone’s dream to own a home someday, and given the astronomical costs of real estate, you are likely to take out a mortgage when it’s time to realise that dream.
Having a high credit score qualifies you for mortgages with better interest rates, meaning you will get your property at a lower cost. A near-perfect credit score can get you mortgage rates of as low as 4%, while bad credit wouldn’t get you any better than 6%.
If you want your dream house at the best price possible, start by fixing your credit. There are many reliable credit repair companies that can assist you with this. Just make sure to thoroughly research any company you use before deciding on one.
Rent default is rampant in the United States, especially with the COVID-19 pandemic still at large. For this reason, landlords want to ensure all their new tenants can pay their rent without any trouble.
While bad credit won’t necessarily prevent you from renting a home or an apartment, it might put you under unnecessary scrutiny and even prompt landlords to hit you with larger security deposits, as it suggests you are not good at paying what you owe.
All credit card companies do not offer the same benefits, and one company can have different cards given, depending on the credit score of the applicant. The best cards offer the lowest interest rates and come with the fattest assortment of benefits. The higher your credit score is, the greater your chance of qualifying for a premium credit card.
Unless you’re comfortable using public transport, ridesharing apps, and a bicycle all your life, you’ll need a car someday. Fixing your bad credit not only qualifies you for better, low-rate auto loans but also earns you discounted car insurance.
Most auto insurance companies offer credit-based insurance scores, where individuals with the highest credit scores pay the least for insurance. A lower credit score, on the other hand, means paying more, notwithstanding the presence of a clean driver’s record. Once you get a significant improvement on your credit, check with your agent as you may qualify for insurance discounts.
Your credit score is a reflection of your financial status, and this status can impact so many aspects of your life as an adult. Fix your bad credit today and put yourself in a position to enjoy all the above benefits and more.