Your credit score is like a magic wand.
When your credit score is on lock, you can feel confident 💁🏾 waving it around at the dealership, mortgage office, or leasing office and it opens many doors.
When your credit score is not-so-great, that magic wand malfunctions and life can get a bit challenging (and expensive 💰).
To motivate you to get your credit poppin’, here are four amazing magic tricks you can do when you fix your credit.
(Before we jump into the ways your credit score can help you win at life, did you know you can check your credit scores and reports for free? Yup! You can! Get your free credit report, score and your Credit Report Card at my favorite place, Credit Sesame.)
Escape That High Car Payment
Your credit score is a risk score that shows lenders and creditors how likely you are to repay your debt.
A low credit score is a sign that you could be a credit risk and it can land you loans with high-interest rates and fees.
How can this impact your purse?
Here’s a very simple example:
- Say you need a $10,000 loan for 60 months. You have good credit and land a 4% interest rate. You would have monthly payments of $184.
- Say you need a $10,000 loan for 60 months, but you have less-than-perfect credit and land a 14% interest rate. You would pay $233 per month.
That’s an extra $50 per month spent on a payment that you could be putting into an emergency fund, using to pamper yourself each month, or using to repay other debt.
Improving your credit score (and shopping around for auto loans to find the very best deal) can save you a bundle.
Finally Get Your Own Crib
Are you trying to move out, find a new place, or buy a home?
Your credit score comes into play here too! Landlords and leasing companies look at your credit score to decide on whether or not to let you rent a place.
A high credit score could help you qualify for the rental you want with a minimal security deposit. Some property management companies allow you to lease without a security deposit at all if you have good credit or better!
Buying a home is one of the most important times when your credit score will be reviewed. Your credit score can qualify you or disqualify you for a home entirely.
A lower credit score can also give you a better interest just like with an auto loan.
A low-interest rate can save you a boatload throughout the life of a mortgage. We’re talking 15 to 30 years of savings here!
Sign Up for Utilities Without That Nuisance Deposit
When you get into your new rental or home, having a decent credit score can save the day when it’s time to set up your utilities.
Utility companies, phone companies, and other companies will check your credit to make sure you’re a creditworthy candidate for their service.
You can get denied service or be required to pay a security deposit if your credit is low. You have the right to question why the service is denied, but the decision could stand.
Raising your credit score could literally turn the lights on in your new place and keep funds from a potential security deposit in your pocket.
Get Your Dream Job
Finally, your credit history can be the deciding factor on whether or not you get the job of your dreams.
Employers are allowed to pull a version of your credit report as long as they notify you in advance. Employers can look to see if you have many late payments, adverse credit history, or excessive debt which can be a sign that you’re irresponsible.
You want that dream job right?
Keep your credit report clean to show employers that you can handle your finances and any other obstacle the position may throw your way.
Do you have less-than-perfect credit? No worries. Showing recent signs of improvement after bad credit history could also tip the scale in your favor.I'm going to use my credit score to help me win at life! Thanks, @creditsesame & #TheBudgetnista! Click To Tweet
Your Credit History is More Than Just a Number
Your credit history and score tells employers, lenders, and creditors a lot about you.
It can impact how much you pay for debt vehicles like mortgages or whether you qualify. Improving your credit can also be huge for your career!
Are you ready to improve your credit score? Check out my FAVORITE spot to get my free credit score and reports, Credit Sesame. Completely free and no credit card required!
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