9 Money-Saving Reasons To Improve Your Credit Score
We hear about credit scores a lot, but do they really matter?
How can improving your score really help?
Improving your credit score doesn’t have to be hard, and it can have a lot of benefits.
Here are 9 ways getting your score up can benefit you right now.
1. Employment Opportunities
Some employers will check your credit report as a way of determining your financial responsibility. A poor credit report can make you look like an irresponsible hire.
2. Cell Phone Contracts
You can probably get a cell phone contract regardless of your credit rating, but it may cost you a hefty deposit. Having a high credit score will make it obvious to your telecom that you’re not a high risk, and can often entirely eliminate the need for a security deposit.
3. Credit Card Approval
Having a great credit score doesn’t guarantee your approval, but it is a huge factor. Every time you apply, it shows up in your report, so you want to limit your number of applications as much as possible. Having a great score will let you apply with confidence that you’ll be accepted the first time.
4. Higher Limits
When asking for a higher credit limit or a bigger loan, a few factors will determine the answer. Your debt and income levels obviously count here, and so does your credit score.
5. Car Insurance Rates
Auto insurers are some of the companies that can use a low credit score against you. Having a lower credit score will justify increased insurance premiums compared to applicants with a better score.
6. Lower Interest Rates
Any time you’re borrowing money, you can be sure it will be tied to your credit score. Most lenders will have interest rates that scale based on a number of factors, the highest among them is usually your credit score, or as they see it, your risk level.
7. Rental Approvals
More and more frequently landlords are using credit scores as one of their tools when assessing tenants. A good credit score is an excellent sign of a low-risk tenant who’s likely to pay their bills and rent on time, exactly what a landlord is looking for.
8. Utilities
When setting up your utilities in a new home, security deposits can quickly add up. A few hundred dollars deposit for each utility can easily total up to a higher number than you’re comfortable putting into security deposit limbo. Having a good credit score can help you eliminate the need for deposits at all.
9. Emergency Funds
In the event of an emergency having a good credit score can make it significantly easier to access the funds you need in a hurry, or to assure businesses that you can pay. It’s often still possible to accomplish these things with a low credit score, but it can take a lot longer, and you may not have the time to spare.
There’s no reason to be stuck with a low credit score forever, a credit specialist can help you raise your credit score in almost any situation.
Whether you want to raise it fast with an intensive program, or maybe you have time to take it slow, an expert can walk you through the process.
Don’t let a low credit score keep you down, start taking steps today to improve your tomorrow.
