While most of us associate credit with borrowing funds to purchase goods and services now and pay for them later, the truth is that your credit impacts your life in more ways than that. Your car loan, home loan and credit card interest rates are not the only things affected by your credit.
Interest Rates Are Not The Only Way Credit Affects Your Life
We all know that interest rates we pay for borrowing funds are based on our credit, but did you know that your credit also affects how much you pay for your car insurance, homeowner insurance, utility bill deposits, and that it can even influence your career? – More and more companies are performing credit history checks when hiring new employees. Why? Because individuals with good credit are being looked at as honest, responsible, well-organized, secure and dependable. Don’t let your credit stand in your way of getting that dream job you’ve always wanted. Its one of those things employers use when they cant decide between the two great candidates. Make sure you’re the one that gets the job.
Why does having good credit matter to me if I’m renting?
Many landlords require credit check as part of their rental application and charge higher security deposits to those with lower credit scores. Maybe you’re not ready to be a homeowner just yet, but don’t let your credit stand in the way of getting that nice apartment close to your job or school.
Are you in college or considering going back to school?
Not everyone can qualify for government aid and government loans. Quite often one has to get private student loans to finance the future. Borrowers with high credit scores quality for loans with favorable terms, while those with lower scores pay higher interest rates. This ultimately means that the borrowers with higher credit scores have more buying power and pay less for their education.
Have you ever thought about opening your own business?
Many people dream about starting their own business. Most start-ups require initial capital, but most individuals don’t have the cash needed and may need a small business loan. You may have the best business idea out there, but without the initial capital your venture will never get anywhere. In order to qualify for a business loan, you need to have good credit.
And what about your lifestyle?
Your credit can save you or cost you your hard earned money. Better credit history and credit score will help you live a better lifestyle. Take two individuals for example, one with excellent , and the other one with poor credit. These two individuals can have the same car payment, but one of them will be driving a fully loaded model with leather seats, GPS, sunroof, etc., while the other one will be driving a base model. Poor credit gives you less buying power, and you end up paying more for less. The same goes for your mortgage interest rates and mortgage payments.
The Bottom Line Is
As you see, having a good credit is important more than you think. Your whole life is impacted by it. Its always wise to check your credit at least once a year and ahead of time before buying your dream home. This will give you enough time to learn and improve your score in order to qualify for more favorable rates. And don’t forget good credit will not only save you money on mortgage, it will save you money on your homeowner and car insurance as well.
Your creditworthiness not only determines if you qualify for a home loan, but also the type of the loan and the interest rate that comes with it. The better your interest rate, the more home you can afford.
If you’re considering buying a home, but you’re unsure about your creditworthiness or don’t know where to start, reach out to us and we’ll guide you. We have been there before, and we’ve helped others reach their goal and find that perfect home we all deserve. We know its an emotional and life changing decision, and we want to help. Get in touch with us and well have one of the local lenders reach out to you. They’ll be more than happy to review your credit and give you advice on how to finance your dream home, and then well go find it together.