Nowadays, people are using credit to buy goods and services. Before you go on a shopping spree using your credit card and forgetting to pay, you have to know that today, getting a good credit score is not only used for loans and getting a credit card. It’s more than those.
More businesses are now requiring people to have good credit before they can offer you their services and products. Businesses like credit repair Houston TX can help you fix your credit score.
In this post, we have listed five reasons why you should have good credit.
It Affects Where You Live
Before you can purchase a house, mortgage lenders want to ensure that you can pay for your loan. With a low credit score, lenders will consider it to be risky to provide you with any mortgage loan. Also, if you are already approved for a mortgage, your credit can affect your interest rate which in return can influence your monthly mortgage payment.
Unfortunately, if you have bad credit, you might be given a higher mortgage payment, or you can have your application for a mortgage turned down.
Aside from buying a house, your credit can also affect your rent. Landlords can use your credit to see if they’ll consider to let you rent a space or not.
Also Read: FAQs About Mortgages For First Time Buyers
It Affects What You Drive
Unless you are rich and you have enough money to buy a car, you will need to have a loan. Your credit score can either qualify you for a loan or not. The interest rate and amount will also be affected. In general, loan applications with a high credit score can be eligible for a bigger loan with lower interest.
It Affects Your Job
During the hiring process, a lot of employers check your credit reports. If they find that you have no financial responsibility, they might not hire you. Also, some employers check credit scores before providing a person a raise or a promotion.
It Affects Your Capability to Start a Business
When starting a business, you will need to have enough cash as capital. If you don’t have enough money, you will need to find a business loan. To be qualified, you will have to have good credit.
It Affects Your Monthly Bills
It can come as a shock to you that you need your credit to establish any utility service. Electric companies consider you to be borrowing a whole month of electric service. They will first check to see if you have good credit before providing with electricity. Aside from electricity, this also applies to telephones, water, cable and cell phones.
Your credit is defined mostly by how much you have paid and not paid in your bills for the past months or years. A lot of businesses, landlords, utility providers, mortgage lenders, and employers check your credit to predict if you are financially responsible.
Whenever you need to borrow money or any services, you will have your credit questioned. Because of this, having good credit is pretty essential.