7 Reasons to Repair your Credit Today!
It’s 2019. When was the last time you took a look at today’s economy and the cost of living nationwide? It is steadily increasing. If you ask several millennials what it takes to simply afford rent or a monthly mortgage payment they will tell you a “side-hustle” or multiple streams of income. While true, having a bad credit score will certainly cost you more money and more problems.
Bad credit scores reflect negatively to both employers and lenders. These businesses use your scores to determine whether you’re a risk they’re willing to take. With this in mind, we’ve provided you with seven reasons to repair your credit today.
1. High Security Deposits
Have you noticed when you’re applying for a phone, cable, or utility the requested security deposit is indeed high? The company has determined you’re a bad risk. Because of this, a higher deposit covers them in the event you fall behind. Some people find that on time payments gets them their deposit back. However, having a good credit score could prevent the security deposit altogether.
2. High Insurance Premiums
Did you know “insurance scores” determine the rates you pay for auto, life, and home insurance? Insurers use insurance scores to determine your likeliness to file a claim or have an accident. These scores derive from consumer credit reports they predict their losses in claims. The higher your insurance scores, the lower your insurance rates and vice versa. It has been shown that by improving your credit rating you will lower your insurance rates by 15%.
3. Refinancing your Loans for Lower Interest Rates
Younger consumers may not know the benefits of refinancing a loan. Refinancing your loans saves you money allowing you to pay off your balances sooner. Before applying for a new loan, review you credit standing, and take step to improve your credit score. A good idea would be to increase the score you originally had when first signing your original loan, to a better score before preparing to refinance. Remember better credit scores yield better interest rates. Better Credit Better Life
4. Auto Dealer Ads
If you ever watch TV commercials or received mail, you’ll noticed the good deals car dealers offer. Most people see these ads and go to the dealership expecting the same deal. However, if you ever read the fine print, you’ll see only individuals with good or excellent credit scores will receive them. Although you may still walk off with a car, dealerships are notorious for leaving individuals with ridiculously high interest rates, long terms and monthly payments.
5. Purchasing a Home
More people are turning to buying homes now due to the rising rent prices. In today’s economy, renting an apartment is almost the same amount if not more than a monthly mortgage payment. If you do not take the necessary steps to repair or increase your credit rating at any other time. Preparing for a mortgage is the best time to restore your credit! In order to qualify for loans, you must have a good credit rating.
It is important to realize that a lower interest rates equals the lower overall amount you will end up paying over the course of a loan. With mortgages, interest rates add up to thousands of dollars over the life of the loan. Work hard to clean up your credit report and improve your scores prior to applying for a mortgage. It may do you justice to hire a professional to do it for you.
6. Premium Credit Cards
Here’s where your reap the benefits! Having an excellent credit score qualifies you for various credit card offers. These offers can be anything from low interest rates, travel and hotel rewards, balance transfers, zero annual fee, cash back rewards, and sign on bonuses. You choose the offer that best meets your needs. Most credit cards provide you with a credit monitoring service allowing you to keep track of your credit score. Keep in mind you must handle your spending wisely in order to keep qualifying for good rates and increases.
7. Cash is King but sometimes Credit is Better!
Have you noticed when its time to travel a credit card is required? When it comes to rental cars and hotel rooms credit cards are required for a security hold. In some cases, you’ll find you will be turned away or charged a fee for using a debit card. Cash would not be acceptable in this case at all. A card on file will be used to cover any incidentals. If you have dreams of traveling the world one day or taking a road trip you’ll need a credit card. Find out where you stand and work to improve your credit score to qualify for the best credit cards.