A credit score ranges from 300 to 850 and represents how trustworthy a credit card owner is. The higher your credit score is, the more likely you are to get a loan. A credit score is calculated using your total debt, the number of accounts you have, your previous repayment history, etc.
If you have a bad credit score, it’s not merely that your probability of getting a loan will decrease; it also affects your chances of getting a lower insurance rate, an apartment, and will cost you money in the long run on numerous fronts.
Here are a few reasons why you need to repair your credit score.
Save money with a lower interest rate
If you have a high credit score, you have more creditworthiness. This means that lenders will feel more secure in giving you a loan, and your credit history assures them that you will repay the loan on time.
Hence, lenders don’t give you high interest rates to ensure they make a return on their investment. Lower interest rates can end up saving you thousands of dollars in the long-term.
If you have a bad credit score, the lender might still give you a loan, but will charge you a higher interest rate to counterbalance the risk of you being unable to repay your loans fully and on time.
Pay less for insurance on a car and home
To lease a car or get a mortgage on a home, you need a good credit score. Your credit history has a significant impact on these insurance rates.
Car insurance companies look at a person’s credit score in most US states—except Massachusetts, California and Hawaii—before quoting an insurance rate.
Your repayment history and the number of debts you already have play a massive role in insurance companies assessing your risk level. Studies have shown that people who have a higher credit score are involved in fewer accidents and, consequently, file fewer insurance claims. Fewer claims result in companies paying less money and being more likely to give you lower rates.
Similarly, to buy a home or get life insurance, insurance companies and banks will look at your credit score to determine whether you’re eligible for insurance or mortgage.
Secure better housing
A good credit score isn’t just crucial for buying a new house. It’s also needed if you want to rent a lovely apartment in a good part of town. Many building owners are now going through potential tenants’ credit history to judge if they will pay rent on time. If you have a bad credit score, it’s more likely that your application for renting an apartment will be rejected.
If you have a bad credit score and are worrying about these potential problems in your future, one option is to hire credit repair services in the USA. Oak Credit Repair offers fast credit repair services for fixing your bad credit at an affordable rate.
Their experienced credit repair consultants will evaluate your credit reports and fix your credit history in just a few months with a money-back guarantee. Call them at (484) 238-1225 and fix your credit score today.