15 Reasons You Need to Fix Your Credit
You might think bad credit only keeps you from getting a credit card or loan, but
it goes further than that. Bad credit can leave you homeless, carless, and
jobless. That’s because more and more businesses are using your credit to
make decisions about you. Still not convinced it’s time to get your credit act
together? Here are 15 reasons you need to x your credit.
Save Money on Interest
Low credit scores typically mean higher interest rates, and that means higher
nance charges on your credit card balances. Repairing your credit would
allow you to get a more competitive interest rate and cut back on the money
you pay in interest.
Stop Paying High Security Deposits
Utility service providers and even phone companies check your credit before
allowing you to establish service. To oset the risk of a default, those service
providers charge you a deposit. Making your payments on time will allow you to
get your deposit back. Improving your credit score keeps you from having to
pay the deposit altogether.
Get Higher Credit Limit
Generally, as you demonstrate you can pay your bill on time, your creditors score before increasing your credit limit. A bad credit history might get your credit limit cut your credit score even more by raising your credit utilization.
Stop Debt Collector Harassment
Repairing your credit includes paying o those debt collection accounts. Until
you do, you face relentless calls and letters from debt collectors. While you can
take action to stop debt collector calls, collection accounts often move from one
debt collector to another. When a new collector gets your debt, you’ll have to go
through the process of sending letters to stop the calls all over again.
Feel Better About Your Credit Score
After you repair your credit, you won’t have to be afraid of checking your credit
score or worse, having someone else check it. You can have condence
knowing you have a healthy credit score.
Buy a New House
Homeownership has always been the American Dream. Bad credit is the
nightmare that keeps you from realizing that dream. Many banks won’t lend you
a mortgage until you’ve repaired your credit. Those that will approve you with a
high interest rate that makes home ownership cost a lot more.
Rent an Apartment
Not only can bad credit keep you from buying a home, it can also keep you
from renting an apartment. Many landlords now check credit to determine the
likelihood that you’ll be late on your rent. Bad credit could get your rental
application denied.
10 Buy a New (Or Newer) Car
Auto lenders are among the many businesses that check your credit before lending to you.
Without a good credit score, your auto loan application could be denied leaving you to drive
the same vehicle.
Get a Job
Employers check credit before deciding to hire you. Some government, nancial,
management, and executive jobs are particularly curious about your nancial history. A bad
credit history could cost you the job, or the promotion you’ve been working hard to get.
Take Some Financial Pressure off Your Spouse
When one spouse has better credit than the other, the spouse with good credit will be the
one applying for the loans and credit cards. Improving your credit will let you bear some of
the credit-brunt rather than placing it entirely on your spouse.
Stop Relying on Co-Signers
When you have bad credit, you’ll often need others to co-sign for your loans and credit
cards. If you can nd someone to co-sign, you’re putting nancial pressure on them but they
don’t receive any of the benets. Repairing your credit will save you the time and hassle of
burdening someone else with co-signatures.
Start Your Own Business
Starting a new business takes money, so many entrepreneurs rely on small business loans
to get their businesses o the ground. Bad credit can keep you from getting the nancing
you need to start your new business. You’ll have to improve your credit before a bank will
give you a loan.
15 Protect Your Children's Credit Score
Having bad credit can tempt you to use your child’s credit. You might think you’d never do
that but you never know what you’ll do when you’re desperate. Say you have to have
electricity turned on, but your credit’s too bad. You could easily rationalize using your
child’s credit to have the electricity turned on. Keep your own good credit and you won’t
think about exploiting your child’s
