Having a low credit score may not seem like an issue, especially since it doesn’t affect your day-to-day living. However, you may be surprised at how much of an impact it can have when you need to make any significant financial decisions. If you’re not yet convinced that repairing your credit score can be necessary, take a moment to review just how many areas of your life it can affect.
Looking at your options around advanced credit repair may be worth considering when you realize many credit card issuers won’t increase your limit with a low credit score. You may wish to make a big-ticket purchase, but your credit card company has looked at your score and viewed you as high risk. You generally have more flexibility when you pay your bills on time, with creditors more willing to increase your limit based on your past payment history.
Even if you’ve been saving hard to buy your first home, that doesn’t necessarily mean lenders will be lining up to offer you a mortgage. If you have a poor credit score, they may see that as a sign that you cannot make mortgage payments on time.
If you can find a lender willing to offer you a mortgage, it’s often at a higher interest rate than what traditional lenders provide people with excellent credit. When you start saving to purchase property, start looking for ways to repair your credit at the same time. By the time you’re ready to start shopping, you may stand a better chance of securing a competitive loan rate.
Missing the odd credit card payment or being visited by debt collectors might not seem problematic, but it might affect your ability to secure a new job or be promoted in your current one.
Nearly all companies conduct a background check on potential employees, but around a third will do credit checks on their candidates. According to surveys, the number one reason for doing so is to protect employees and customers. If your credit score isn’t as healthy as it could be, you may not be considered for a new position.
You might think your credit score only matters if you’re trying to purchase a new home, but there’s a chance it could play a part in the apartment-renting process. Landlords often run credit checks to determine your ability to keep up with rent payments. Even if you generally have good money habits, your rental application might be declined if you have bad credit.
While the practice is banned in some states like California, Hawaii, and Massachusetts, you may have to pay higher insurance premiums if you have a low credit score. Many insurance companies use credit-based scores to provide quotes. According to the Insurance Information Institute, insurance companies can use payment history and total debt to assess how much of a ‘risk’ you are.
Repairing your credit score may not seem necessary, but it may affect many different parts of your life without you realizing. If you’re about to make a significant life decision, such as purchasing a new home or applying for jobs, consider looking at your credit repair options at the same time.