Now-a-days you hear everyone talking about credit scores, it’s almost exhausting! There is a reason for it, I promise. Your credit score shows your level of financial responsibility. There are many factors that will affect your credit score, so keeping up with factors that improve or ruin your credit score should be something that is very important to anyone. We will start with the most important reasons to have good credit:
4 Important Reasons to Have Good Credit
Purchasing a Car
As one of the most common large purchases that Americans will make, your credit score can save you a lot of money in this scenario if it is in good standing. People with lower credit scores will end up paying more money for the same car, compared to those with good credit. Why? Because if you are financing your new vehicle, interest rates will be higher for those with lower credit scores, and generally the down payment will also be higher.
In addition to the actual car payment, you will also need to purchase car insurance. Nowadays a lot of insurance agencies will also factor your credit score into calculating premiums, which will result in a higher cost for those with lower credit scores… Yikes!
Buying a Property
Most people dream of owning their own home, and there are a lot of benefits to owning property. Whether you plan to live in the home, or rent it out, there are lots of effects that your credit score will have. There are stricter requirements for getting a loan, but with a good credit score you can avoid a lot of the headache.
Some people already own their property, but down-the-line they may want to take out a loan to make improvements on their home for the sake of selling the house, renting it, or just updating for their own satisfaction. These type loan amounts can vary depending on the amount of work needing to be done on the property, however you will still have to have good credit to get the amount you need with the least amount of interest.
Renting an Apartment or House
So many rental properties will now require a credit check for delinquencies and overall score. If you have a lower credit score, it may require you to have a cosigner. Even in those situations however, if you credit score shows too many signs of neglect, renting a property can be extremely difficult. This is one of those common situations where you credit score could really affect your living situation, so it’s important to work on your credit so you can have access to a property that fits with your lifestyle and ideals.
Starting a Business
Many people these days are taking matters into their own hands and making their dreams a reality by starting their own business. Even with so many businesses becoming remote – working from home or a coffee shop – there are still a lot of costs that can quickly add up. From gas, to internet, to computers, printers and so much more, many businesses need a start-up loan to get their new business on its feet.
It’s ironic that a venture to make more money could require so much money, but when you have a great business plan and good credit, it can all set you up for financial success and overall happiness in life. Don’t let bad credit scores stand in the way of your dreams!
How to Fix Your Credit
So many things can negatively affect your credit. Even if you are never missing a payment, your debt to balance ratio may be severely compromised, you might have a high number of cards open (or closed), or you have had too many hard inquiries. So many things can wreck your score if you are not careful, which is why it is important to consult with experts on how to fix your score.
We love consulting with our clients on getting loans to fit their needs, and so often credit scores can be that monster hiding in the closet to scare lenders. Don’t let your credit score be a nightmare, be proactive and take steps to fix your low score or maintain your high score so you are on your path to success!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584