DThese days, a good credit score is very important to have. Not only can it impact purchasing big things like houses and cars, but a bad credit score could also keep you from getting hired for a job!
Your Credit Score Impacts:
Buying a House
Purchasing a house is one of the greatest investments you can make. It is also one of the most difficult to achieve, if you do not have a good credit score. The 2008 recession caused millions of foreclosures, and even though the housing market has rebounded, banks are still cautious about lending money.
Even If you are not ready to buy a home, your credit score can also impact renting a house or an apartment. Most landlords run background and credit checks, and if you show delinquent credit, you may be denied housing or be required to pay a larger deposit.
Starting a Business
If you are thinking about starting a business and need a loan, your credit score and history will factor into your eligibility for small business financing. Regardless of whether you are starting a business from scratch or trying to get the funds to expand, your individual credit score will affect your ability to get a loan for your business.
Getting a Job
Many employers now run credit checks on prospective employees prior to hiring them; this is especially common in the government and financial sectors. A negative credit score or history could potentially keep you from getting your dream job!
While a good credit score is an important factor in obtaining any type of financial assistance, some banks are still willing to give loans to individuals with poor credit. However, there is a catch; if your credit is damaged, you will have to provide more documentation for your loan and you will also have a higher interest rate. This is how financial institutions outweigh the risk of giving you money.
Buying a Car
If you are like most, you will have to take out a loan when you purchase a vehicle. If you get approved for an auto loan with a poor credit score, you will still only qualify for high interest rates. You will also have to pay a larger down payment, which means you will end up paying thousands more for the same car compared to someone with good credit. Credit also impacts your auto insurance rate. In fact, almost all insurance companies factor in your credit score when calculating monthly payments.
Dallas Lease Returns Tips to Improve Your Credit Score
To repair a damaged score or to build credit in general, follow these tips:
- Make house and car payments on time, every time
- Pay off loans before the end of the loan period
- Get a credit card with a low limit and pay it off each month
If you are in the market for a pre-owned vehicle, Dallas Lease Returns can help! Click here to browse our inventory today!