One of the most important things for Americans is to have an excellent credit score. And, why not? A bad credit score can have negative consequences, whether you're an individual or a small business. Yes, you heard that right.
You might assume that lousy credit keeps you from getting a loan or a credit card, but it goes beyond that. The chances of ending up homeless, jobless, careless are pretty good. And, here's when lenders perceive you as a risk who won't be able to spend the money they lend you.
Thus, financial institutions and others are using your credit to make decisions about you. In addition, individuals today are relying upon credit repair institutions for helping their clients with credit reports. They are also recommending how to buy a tradeline to help their clients from the tradeline strategy.
Are you still confused why getting your credit act together is vital? Well, here are some reasons that validate the benefits of going in for a credit repair. Stick on to discover what these are. Let's get going:
Reason #1: Save Money on Interests:
Low credit scores account for higher interest rates. And, this points towards higher finance charges on your credit card balances. Thinking of credit repair allows you to have a more competitive interest rate. But, you also will have to cut through the money that oozes your pocket as interest.
Reason #2: Resists Higher Security Deposits:
Did you know that phone companies and utility service providers check your credit far before establishing your service? Making timely payments helps in getting your deposits together. And, to offset the default risks, the service providers charge some money for deposits.
Thereby, you no longer will have to pay your deposits together once you have a good credit score.
Reason #3: Receive a Lower Insurance Rate:
You may never want to believe it, but credit affects your insurance premiums, too. And, this saying holds good for almost everything, right from your life, home to auto insurance. A bad credit history points towards paying more for your insurance than having a better credit score.
Reason #4: Disables you from Paying Cash for Everything:
A bad credit score pushes you away from getting a credit card. And, yes, you'll have to try hard. So, does it mean you'll have to pay cash for everything? Of course, it is a clear determinant.
If you think you'll do fine without a credit card, then you're probably right until you have to rent a car. Then, you'll have to pay an extra deposit if you do not have/use a credit card.
Reason #5: Have a Higher Credit Limit:
You might be aware that creditors increase your credit limits once you pay those bills on time. But, do you know that a credit card issuer checks your credit score before thinking of expanding your credit limit. And, this makes going for a credit repair even necessary. After all, bad credit history may hurt your credit limit by raising your credit utilization.
Reason #6: Stop Harassments by Debt Collectors:
Indulging in a credit repair also includes paying off those debt collection accounts. But, again, it's the relentless calls from debt collectors that worry you the most. When you stop debt collector calls, the collection accounts are often seen moving from one debt collector to another.
And, this process becomes even more tiring and complicated. The reason behind this is with a new collector; you'll have to send letters for stopping calls all over again.
Reason #7: Feel Better About the Credit Score:
Once you indulge in a credit score repair process, you no longer will have to worry about checking it. Instead, you'll have the confidence of a good and healthy credit score at all times.
Reason #8: Purchase a New House:
Homeownership has always been a dream of many Americans. And, bad credit is one nightmare that restricts you from realizing this dream. Not many banks lend you a mortgage until you've repaired your credit. What's even worse is the ones that approve you charge a higher rate of interest. So, it's pretty safe to say that homeownership costs you a lot more than you can imagine with a bad credit score.
Reason #9: Renting an Apartment:
Bad credit not only restricts you from buying a house but also from renting one. Many landlords today evaluate credit to determine if tenants will be in a position to pay their rent or not. And, the worst part is you can even face rejection in your rental application- all thanks to bad credit.
Reason #10: Buying a New Car:
One of the many businesses that check the credit before lending to you is auto lenders. Chances of having your auto loan or insurance application are good, especially when you don't have a good credit score. And, this all leaves you to drive the same exact vehicle.
Reason #11: Getting a Job:
Employers usually evaluate your credit before hiring you. Some financial, management, government, and executive employers become curious about your financial decisions and history. What's worse is terrible credit can be a factor in costing you a promotion or even a job; you're giving your sweat and toil too.
Reason #12: Relieve your Spouse from Some Financial Burden:
A spouse with good credit always applies for loans and credit cards than the one with unfavorable credit. Thus, be a supportive partner and work diligently for improving your credit if you wish to bear a credit brunt. After all, you never want to place it on your spouse entirely!
Reason #13: Rely on Co-Signers No More:
Bad credit often enables you to rely on others for co-signing for your loans and credit cards. Unfortunately, having someone to co-sign puts a financial burden on them. In turn, they aren't entitled to any benefits.
Hence, it is always better to repair your credit. Moreover, it saves you time and hassle involved in burdening someone else with co-signatures.
Reason #14: Initiate your Own Business:
You need money to set up your business, independent of the size. Entrepreneurs today rely on small business loans for establishing their business roots. Unfortunately, now that you have everything in place, bad credit can clench your hands. Yes, you heard that right. It can keep you away from getting the required financing for initiating the business. Thus, if you want a bank loan, you'll have to work on your credit.
Reason #15: Safeguard your Child's Credit Score:
Lousy credit may want you to use your child's account. Although you may never want to do that, you can never be too sure of the situation. For instance, you have electricity turned on, and your credit is terrible. Therefore, rationalizing your child's credit in a situation like this works wonders for turning on your electricity may sound the best option.
Financial experts suggest keeping your credit sound so that you never have to think of exploiting your child.
The Verdict: Make your Life Easy with a Sound Credit
Now that you know how credit affects more than your finances, it's time to work a little to improve it. After all, you don't want to sabotage your life decisions owing to bad credit. So ensure staying updated on the credit news to make wise financial decisions for yourself.
Have any more reasons in mind? Feel free to share those in the comments section. Till then, start credit repairing your dreams!