Why is it important to fix my credit Score?
Today we are becoming more dependent on our credit to make life changing purchases and financial decisions. Many people use their credit score in order to take out loans to buy either a car or a house. When using your credit to take out loans or credit cards it will be recorded under your credit report. This credit report shows your history of paying the loan or credit card that you took out.
Many people take out loans in order to payoff other debts they have accumulated over time. When having a bad credit score you limit the ability in taking out other loans such as auto loans, house loans, personal expense loans and a debt consolidation loans. Without a good credit score you might get a loan but in return you would be paying very high interest.
Another reason why you need good credit is to be consider for employment. A lot of businesses are now conducting a credit checks to see how you handle your finances. This will show if you are a trustworthy employee and responsible person with just checking your credit score. Employments where they do a credit check in which most cases are included on your background check are jobs that have federal contracts, federal/government jobs, law enforcement jobs, and financial jobs.
Having a type of credit score affects the decision of getting your loan approved. You can have bad credit with a decent credit history, for example your credit score can be 580 and you have very little missed payments or accounts that had went to collections. A loan officer will evaluate your whole credit history and determined if you’re a trustworthy person to give a loan out. The interest rates and annual percentage rate will also be determined by your credit. If you have a good credit then most likely you will be given a low interest rate and if you have a bad credit then most likely your interest rate could be so high that you would be paying extremely high interest rate. Paying high interest rate can be very stressful for some people and a struggle for years to come.
Recent research shows that 80% of Americans are in debt of some sort. This is equivalent to 8 out 10 people you meet are in debt. Most people will live their life’s paycheck + paycheck because of bad cred, and will be indebt for a very very long time.
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