TOP TEN THINGS AFFECTED BY YOUR CREDIT SCORE

Having good credit is a major blessing in today's society.  Fewer people have it than ever before, and it haunts the lives of those who don't.


Below, I've included the top ten things affected by your credit score.  How many of these issues have effected you?


1. High interest rates on your credit cards and loans


Creditors and lenders see bad credit applicants as riskier than their better credit counterparts. They make you pay for this risk by giving you a higher interest rate. Over time you’ll end up paying more in interest than you would if you have better credit.


2. Credit and loan applications may not be approved


Because creditors and lenders think you’re a risk, they might not want to lend to you at all. You may find that your applications are being denied because of bad credit.


3. Difficulty getting approved for an apartment


Who knew that landlords checked credit before allowing you to sign a lease? It’s true. Having bad credit can leave you homeless or close to it.


4. Security deposits on utilities


Utility companies – electricity, phone, and cable – check your credit as part of the application process. If you have a bad credit history, you may have to pay a security deposit to establish service in your name, even if you’ve always paid your utility bills on time.


5. You can't get a cell phone contract


Yep, cell phone companies check your credit too. They contend that they’re extending a month of service to you, so they need to know how reliable your payments will be. If your credit’s bad, you may have to get a prepaid cell phone or go without one at all.


6. You might get denied for employment


Certain jobs, especially those in the finance industry, require you to have a good credit history. You can actually be turned down for a job because of negative items on your credit report, especially high debt amounts, bankruptcy, or outstanding bills.


7. Higher insurance premiums


Insurance companies check credit too. They say that lower credit scores are linked to higher claims filed. Because of this theory, they check your credit and charge a higher premium to those with lower credit scores, regardless of the number of claims you’ve actually filed.


8. Calls from debt collectors


If you have past due bills, chances are debt collectors are calling you for them. It typically comes with the territory when you have bad credit.


9. Difficulty starting your own business


Many new businesses need banks loans to help fund their startup. A bad credit history can limit the amount you’re able to borrow to start a new business, even if you have the greatest idea and the data to prove it.


10. Difficulty purchasing a car


Banks check your credit before giving you a car loan. With bad credit you might get denied or you might get
approved with a high interest rate. Most of those “no credit check” car lots charge extremely high interest rates that make it difficult to make your monthly car payments.


If one or many of these credit issues are effecting you, you need our help!  Contact us today for a better
tomorrow!