Why Should I Care About My Credit Score?
Having squeaky-clean finances isn’t a big priority for everyone. Whether you want to spend the time calculating your financial moves or not having a strong credit score is essential to getting where you want in life.
Not having a ton of debt is a great thing but not the only factor financial institutions look for when evaluating your credit. You can have only a small amount of debt but if you don’t make payments on time and have a limited amount of debt diversity you could still have a score on the lower side. It’s not necessarily all about how much you owe, but how responsible you are when paying those debts.
Getting A Car
If you have a lower score you may find it hard to finance your next car. Banks look for strong credit scores when issuing lines of credit for large purchases like automobiles. If you aren’t denied you will likely be looking at a high interest rate, which will cost you more money in the long run.
Getting A Mortgage
If owning your own home is a dream of yours having a strong credit score will only help. If you have a history of poor financial decisions, late payments or even just an absence of credit you could find yourself renting for a very long time. Showing a bank that you are a dependable borrower is essential in getting approved for a mortgage. If you don’t think your score matters then you will be looking at steep interest rates and limited borrowing amounts.
Living The Life You Want
Just because you may not be in the market for a car or home now doesn’t mean ignoring your credit score is okay. You don’t have to obsess over every financial decision you make but you need awareness about what behaviors are positive and what can tank your score. It’s always easier to build a good score over time than at the last minute when you are ready to buy. Start off by looking at where you are now and where you would like to be. Should you cut back on spending? Should you increase your limits to balance out your credit utilization ratio? Learning more about how credit works yourself or consulting an expert is a great way to start.
We're here to help you rebuild and understand your credit. Give us a call to get started or learn more about what we can do for you 1-800-431-0449.