Having bad credit means so much more than just being rejected by a credit card company. If taken for granted, a bad credit score will close many doors without you realizing it! These days, more and more businesses look at a person’s credit history before making any decisions—which is one reason why taking note of your score is incredibly important.
Here are just a few things you can enjoy while maintaining a good credit score:
Start a Business
Any new venture usually requires a small business loan so you can have enough capital to put up your venture. Financing options are a lot more limited if you can’t present a good enough credit score—after all, it’s a hefty sum that will be shouldered by a lender. It is for that reason that many banks will advise you to improve your credit first before they grant you a loan!
Get More Job Offers
Even government agencies and some financial and executive positions require good credit before accepting applicants. For those expecting that long-awaited promotion, get ready to have your credit history dissected by the top brass and your interviewer.
Save Money on Interest
Keeping your credit score at least in the upper 600s opens you up to loans with lower interest rates. This means you get more from your loan than what you are paying for it! With bad credit, banks usually impose higher interest rates as a security measure.
Apply for a Car Loan
No auto lender in the right mind will accept your application if you have a bad credit history. The same goes for people who already have a car and are just looking to replace their old one.
Get Lower Insurance Rates
You read that right. Credit scores influence the type of premiums you get on your insurance. If you’re applying for auto, life, and home insurance, bad credit will most likely get in your way!
Rent an Apartment
These days, even landlords look at your credit history before deciding whether you can rent an apartment or not. If your credit history isn’t as good as you think, your landlord may get the impression that you can’t pay rent on time—reducing your chances of being a tenant of that apartment.
Buy a House
If you can’t even rent an apartment for having bad credit, then buying a house is out of the question. Like any other type of loan, real estate financing imposes a strict requirement in accommodating only those with a good credit score.
Apply for a Credit Card
Perhaps the most apparent reason to maintain good credit is the privilege to apply for a card.
Let’s face it, not all people like paying cash all the time! Sometimes, using a credit card is just simpler and more convenient. But with bad credit, you’ll have to stick with bringing cash with you before you can pay for anything.
Get Higher Credit Limits
Let’s say you already own a credit card, and you want to increase your credit limit. The first thing your card issuer will look at is your credit history and how late are you with your payments. What’s worse is getting your limit cut just hurts your credit score even more! It’s like being stuck between a rock and a hard place. The only way to get out of that predicament is to fix your credit score.
If you always strive to be a low-risk creditor, then good things will come your way. It pays to have good credit and to know how to sort your finances in order. A credit score is more than just a number—in a way, it serves as a key to many doors and opportunities to live a more comfortable life.
Achieve financial freedom with the help of Head Start Biz Solutions. We are committed to becoming your partner when starting your own business and getting ahead of the competition. Visit our Virginia offices for credit counseling, tax services, and other business solutions. Contact us today for a free assessment!