A good credit score affects a lot more than you think. Having a low credit score affects your interest rates and even your ability to get a job. If you don’t have a perfect score, there’s still plenty of time to improve it.
If you’re looking to hire credit repair services, this guide has you covered. From saving money to better credit card options, we’ve rounded up a few of the many benefits of boosting your credit score.
A high credit score will save you a ton of money over the course of your life. Interest is expensive. The lower your score, the more money you’ll spend on interest payments.
Your credit score affects interest rates on mortgages, refinancing, auto loans, student loans, and almost every type of credit out there. You’ll spend thousands of dollars on interest that you could put to better use.
Lower interest rates mean more money goes towards the principal. You’ll pay off your balances and put more money into your home, car, or loan. Think about all the money you’re wasting on interest payments.
With the money saved on interest, you could pay down debt, invest, or save for retirement. After your credit is repaired, take the money you were spending on interest and start saving it. You’ll be amazed at how much money it was and how quickly your savings or emergency fund will increase.
More Loan Options and Better Terms
With a low credit score, getting a home, car, or apartment, is difficult. You’ll see higher deposits, down payment requirements, and interest rates. The higher your score, the more options you have.
When a lender sees a high credit score, they’ll see financial responsibility. They’ll have more options to give you on better terms. You’ll see loan products unavailable to people with poor credit scores.
Even with an FHA loan, for example, the lower your credit score, the higher your down payment will have to be. Your credit score affects all the loans you have now and in the future.
The same goes for auto loans, car rentals, and leasing. The lower your score, the more money you’ll pay for your car. Cars don’t appreciate either. This makes a car loan with bad terms even more expensive.
You’ll See Better Credit Card Options
Credit cards aren’t all created equal. The better your credit, the better your credit card options are. Good credit opens up cards with higher credit limits, better interest rates, and better rewards programs.
Certain cards feature incredible reward point benefits. These points are redeemable for airline tickets, hotel stays, and more. This is free money you’ll want to take advantage of.
With a lower credit score, you won’t have as many credit cards to choose from. The ones you do have access to, have higher interest rates. These cost you a ton of money in the long run.
More Housing Opportunities
With a low credit score, your housing options are limited. You can’t apply for certain mortgages or apartments. With poor credit, you aren’t able to choose any house you wish.
Housing is also limited due to the cost of your monthly payments. With a higher interest rate, for example, your monthly mortgage payment could be hundreds more a month. This means you need to look at lower-priced houses in order to afford your monthly payment.
With great credit, you could afford a $500,000 home. With poor credit, you’ll only qualify for a $350,000 home because of the higher interest payments. Repairing your credit allows you to afford the house you want.
Better Options for Employment, Utilities, and Memberships
Many employers run your credit when you apply for a job. Your credit history gives people a glimpse into how responsible you are. A low credit score shows you’ve had some trouble taking on too much debt or missing monthly payments.
This isn’t the impression you want to make on employers. The same goes for certain memberships and clubs. With a low credit score, you might get disqualified from applying to certain fitness facilities or clubs.
Some utility companies also charge deposits for people with a low credit score. This acts as insurance in case you fail to pay. Skip the extra charges and deposits with a higher credit score.
Lower Debt-to-Income Ratio
With a higher credit score, also comes a better debt-to-income ratio. This means you’ll have less debt compared to the income you make. This shows mortgage lenders and other creditors that you make more than you spend.
The lower your debt to income ratio is, the more money you’ll save on interest. You’ll see better loan terms as well. You want to show lenders that your income is higher than the debt payments you have.
Checking Your Score
If you aren’t sure what your credit score is, you can download a free copy from the Federal Trade Commission. You’ll want to download it to know where you stand and to check for errors.
A poor score is under 580. A fair score is between 580 and 669. A good score is between 670 and 739. A very good score is between 740 and 799, and an exceptional score is over 800, according to FICO.
Why a Good Credit Score Matters: Using a Credit History Credit Repair Company
A good credit score matters a lot. It affects everything from your housing options to the type of job you qualify for. If you have less-than-perfect credit, a credit repair company helps to give you your life back.
With a higher credit score, there are no more restrictions on where you live and what you qualify for. Take charge of your credit and fill out the contact form here. We’ll come up with a customized solution to repair your credit and finally get you out of debt.