FACT: 90% of banks use credit scores to make lending decisions. Having a low credit rating can cost you big money over the long haul.
If you’re wondering whether you should work on repairing your credit, the quick answer is OF COURSE! Keep reading to discover 5 reasons you should absolutely repair your credit.
Reason #1: For Negotiating Lower Interest Rates
How much interest you pay can make a huge difference in your finances. A half-point in interest may not seem like a big deal but it can really add up, especially if it’s over the course of 30 years.
For instance, a borrower with a 760+ credit score could save $185 per month on a $200,000 mortgage compared to a borrower with a score of 620-639, according to MyFico.com.
If you multiply $185 by 30 years, you’re looking at $66,754 savings if you have the better score. That’s cash in your happy retirement account.
Reason #2: To Get Approved for Higher Limit Loans
When you’re searching for a higher limit loan like a mortgage or car purchase, you’ll likely fall into one of three categories: a) approved with an awesome interest rate, b) approved with a so-so or bad interest rate or c) flat-out denied.
Having a good credit score can get you into a nicer vehicle or pad, and you’ll be able to live on the better side of town. Plus, you’ll enjoy a sharp interest rate.
Reason #3: To Unlock More Benefits and Rewards
With a good credit score comes a windfall of great benefits and super cool credit card rewards. You can do things like purchase flights with mile points, get cash back for buying gas or eating out and save money on travel insurance.
Credit cards typically offer sign up bonuses and quarterly rewards throughout the year to keep you using their card. If you’re worried about interest and debt stacking up, don’t be.
Just pay your credit cards in full each month during the grace period and creditors will pay YOU every month, and not the other way around.
Reason #4: For Getting Into a Home or Apartment Rental
When you don’t have good credit, you’ll have a much harder time convincing a landlord or property management company to rent to you. Having bad credit means you haven’t been true to your financial obligations and you’ll appear straight-up risky to folks.
While home and apartment rentals don’t have anything to do with interest rates … you’ll definitely want to repair your credit if you want to live in a rental unit on the better side of town.
Reason #5: To Skip the Deposit on Phone and Utilities
Want better move-in costs? Repair your credit and get ready to smile when you call utility companies to turn your gas and electric on.
Utilities and cell phone companies typically ask you for a deposit of between $60 and $200 if you have sketchy credit, but they’ll skip the deposit for you if you’re creditworthy.
If you think about how many utilities you need to turn on – gas, electric, internet, water and trash – those pesky deposit charges can really add up and hurt your costs to move into a new house or apartment.
Lower interest rates, getting approved for a brand-spanking new house or car, stacked credit card benefits and deposit-free move-ins are all in your future when you start working on repairing your credit. Want to get on the fast-track to better credit? Schedule a Free Consultation and discover how today.