How to Get Ahead With Good Credit?
We are in a society of cash where loans are given to people with good records. Most people in the United States indebted to one credit or the other. In 2018, the US household debt was $31.21 trillion, which was shared among 300 million Americans. Is it surprising? You see, it won’t be wrong if one says we are in a credit society.
But if you don’t have a good credit record, you may not be able to get a loan. Even if you do, the interest rate will be high.
Unlike what most people think, your credit record affects every aspect of your life. It doesn’t only affect your access to loan and interest rate. Insurance companies also use your credit record to set premiums for homeowners and auto coverage.
Without a doubt, your credit score is a great financial tool, but how you use it depends on you. It could be a hammer or lever, depending on how good the score is.
How to Get Ahead With good Credit?
A good credit score is the engine room of your financial history. You can use it to get great deals on loans, credit cards, insurance premiums, cell phone plan, and apartment.
Bad scores can make pay more or even miss out on loans. If your record is messy, there’s no way you can get a good deal on loans. Here are a few examples of how it works.
- If your FICO scores are in the 620 range, you may pay $65000 more on a $200000 mortgage than someone with over 760 FICO’s score.
- Furthermore, if you secure an auto-loan of $30000 for five years, you would pay $5,100 more if you have a lower credit record
Now you are convinced that your credit score is an integral part of your financial life. So, try always to keep tracks of it and understand how your lifestyle affects it. Interesting, you can improve your credit scores irrespective of your age and income.