A bad credit score can cost you: you’ve probably heard it before. But did you know that poor credit could literally cost you money? Here’s how:
If your credit isn’t that great, you might still get approved for loans and credit cards, but at a much higher cost. People with bad credit usually aren’t eligible for low rates and introductory offers, and those APRs will mean that they pay a lot more for their purchases in finance charges. If you work on your credit before opening up a credit card or applying for a loan, you might receive a more favorable interest rate, which can save you a lot of money over the years.
Got your sights set on that great job that you know you’d be perfect for? You’re probably not the only one. In fact, the job market is so competitive that even if you are perfectly qualified, you might be up against dozens of others who also match your qualifications. Many companies these days will run background checks on potential hires, but this goes beyond looking into criminal background. Some employers will also take credit history into consideration, especially if they are trying to narrow down their selection. If you have bad credit and you’re vying for a job that does look at credit reports, it could literally cost you a steady paycheck.
There are a lot of factors that influence your car insurance rate, but many people are surprised to learn that credit is one of them. So even if you’ve done away with your credit cards and don’t care about your credit anymore, this is one big reason why you definitely should. If you have a car, there’s no getting around auto insurance, and a high rate can be a direct result of bad credit. Save yourself the money by working on your credit, and then shopping around for a newer (and lower) rate.
Large down payments
Not only can bad credit mean a high interest rate, but it might also mean larger down payment requirements. While it’s one thing if you willingly want to make a large down payment for a home, for example, it’s another if you’re required to make that much larger down payment because your credit is bad. For many people with bad credit, these large down payment requirements often mean spending their entire savings, or it could be out of reach altogether, making it impossible for them to qualify for that loan.
Do you have a bad credit score that you want to work on improving? If you have overdue bills and unpaid debts, Peachtree Financial Solutions may be able to help if you’re receiving long-term payments from an annuity or structured settlement. At Peachtree, we can purchase some or all of your future payments and provide you with a lump sum of cash. To learn more about selling future payments for a lump sum of cash, contact Peachtree Financial Solutions today. We will be happy to answer any questions you may have about the process, and provide you with a completely free quote.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.