We all know that so many things rely on our credit score, and without good credit, it can be difficult to get approved for loans and credit cards. But borrowing money isn’t the only thing that is dependent upon good credit. Many consumers are surprised to learn that their credit score can affect the following as well:
Whether it’s an auto loan or mortgage loan, many borrowers choose to take advantage of low nationwide rates by refinancing their loans. By refinancing and receiving a lower interest rate, your monthly payments are lower and you can potentially save a lot of money overall during the course of the loan. However, if your credit isn’t good, you may not qualify for those lower rates.
Certain types of insurance, such as auto insurance, can also be dependent on your credit score. This means with bad credit, you might get a bad insurance rate, or you could be turned down completely. However, this will depend on different things, including the type of insurance you’re trying to get and the laws in your state.
It may be a well-known fact that qualifying for a mortgage loan can be very difficult with poor credit, but did you know it can also affect your application for rental housing as well? Many landlords enforce strict credit score requirements as part of their acceptance criteria and won’t accept tenants with poor credit, especially if it’s a community or neighborhood that’s in high demand. As such, you might be forced to live in an area that you really don’t want to be in, simply because you had to find a landlord that is more lenient. And if you do have bad credit and get approved for rental housing, you’ll likely have to pay the last month’s rent, in addition to a larger security deposit.
Many employers will run background checks on job applicants, and while some are primarily checking for any criminal history, some also take credit score into consideration. This means that even if you are qualified for a particular job, having a bad credit score can potentially stand in your way of getting hired.
Are you working on improving your credit score? With so many different things depending on your credit score, it’s imperative to improve it if it’s bad—even if you don’t have intentions of applying for loans or credit cards anytime soon. One of the best ways to improve your credit is to pay off debt, but for many consumers, this is easier said than done. But if you’re receiving long-term structured settlement or annuity payments, you may have other options. At Peachtree Financial Solutions, we can help get you your money sooner by purchasing some or all of your future payments. Many of our customers have used their lump sum payment to eliminate debt, and we’d like to help you do the same. Contact Peachtree Financial Solutions today to learn more and to receive your free quote!
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.