Why We Should Fix Our Credit!

By Jessica Santiago

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 reasons why you need to fix your credit.

Save Money on Interest

Low credit scores typically mean higher rates and that means higher finance 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.

Get a Lower Insurance Rate

Believe it or not, your credit affects your auto, home and life insurances. A bad credit history means you’ll pay more for insurance than you would if you had better credit.

Stop Debt Collector Harassment

Repairing your credit includes paying off those debt collectors. Until you do, you face relentless calls and letters from the harassers. 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.

Get a Higher Credit Limit

As you demonstrate you can pay your bill on time, your creditors will increase your line of credit. But, before a credit card issuer will check your credit score before raising your credit limit. A bad credit history might get your credit limit cut hurting your credit score.

Purchasing a New Home or Renting an Apartment

If you are interested in investing in a home, most likely you will need to take out a loan. Before you can get a loan, you will need to pre-qualify and apply for it. This higher your credit score is, the lower the interest rate you and will qualify for. The lower your credit score, the higher the price. (high credit score = less $$ out of your pockets) If you are not able to own a home, the right option may be renting an apartment. Apartment owners also require a credit check.