Have you ever wondered why credit matters?
Having a great credit score provides many short and long-term benefits. It can affect the interest rates you pay on loans and even where you will live. In this post, we’ll explore all the reasons to be more proactive with your credit score. Continue reading to learn more.
A good credit score will give you better terms on loans
One reason to aim for a higher credit score is to obtain better terms for loans and payments. The consumer credit reporting company Experian reports that credit scores are decision-making tools that help lenders anticipate how likely you are to repay your loan on time. More often than not, the lower your assumed risk, the lower your finance rate. The cost savings alone are excellent reasons why credit matters to your finances.
You’ll have a better chance of getting your first choice
According to Experian, higher credit scores can make it easier to be approved for buying a home or renting an apartment. The better your credit score, the less you will need to worry about alternative housing because you didn’t qualify. Having your first choice of living space is always a nice benefit. Keep that in mind as you work on establishing and maintaining your credit.
You’ll be more mindful of recurring charges
Sure, you’ve been good and paid your bills on time. However, did you know that the recurring charges on your credit cards are affecting your credit score?
A high debt-to-credit ratio could impact your credit score because it suggests to lenders that you rely heavily on your credit accounts, even if you pay them in a punctual manner. Becoming more proactive in understanding your score will prevent misconceptions like this from happening in the future. Furthermore, you’ll better manage your activities and work smarter towards helping your credit.
Free class to understand why credit matters
Need to know more about why credit matters? Don’t miss our free online seminar: The Secret to Understanding Your Credit Score. Check available times on Achieva Credit Union’s Events Page. We can’t wait to see you there.
