3 Reasons To Fix Your Credit Now!
When you have bad or no credit, life is more expensive. It’s as simple as that.
Whether it’s good or bad, companies use your financial history to determine whether or not they should offer you a loan. Even worse, some companies will check your credit when you apply for a job and insurance companies will use your score to determine how much you pay for insurance.
Why Should I Fix My Credit?
When applying for a loan, the better your payment history is, the lower your interest rate will be. The lower your interest rate, the less you have to put down on a vehicle and the longer they will allow you to pay back that loan. So, learning how to fix your credit and maintaining good payment history is a valuable lifelong tool.
Here are 3 reasons you should learn how to fix bad credit today:
- A good financial past opens doors for your future: When you have a long-standing pattern of successful money borrowing, you’ve got way more options. Your interest rate will be lower. People will loan you more money for much longer and you won’t have to put as much cash down on a car. There are a few factors that go into being a good risk. One of them is time on the job. The longer you’ve been with the same company the more willing someone will be to give you a loan. People who pay their bills on time have a higher scores as well. The longer your accounts are open factors into your score as well. For example, if you’ve had the same credit card for 5 years that you pay on time, then it will improve your FICO score. No fix required.
- A bad financial past shuts doors: Your financing options are limited. Interest rates are much higher than if you have past payment problems. You have to put more money down because you’re a greater risk than people with higher scores. Whether you think this is good or bad, unfortunately, it doesn’t matter. This is how companies determine whether or not to sell you a car, house or let you borrow from them. The higher your interest rates, the more you will pay over your lifetime. Fix your score and save yourself money. A lot of money.
- You’ll have more options when you fix it: When you fix your credit and your score goes up you’ll create more opportunities for yourself. Companies will be more willing to deal with you. They won’t try and limit your choices because they know you’ll be able to handle the payments. They won’t have to worry about whether or not you’ll default on your loan. Banks and other lenders will want to work with you rather than avoiding working with you. You’ll pay much less over your lifetime as well. So, be good, not bad. 🙂
How to Fix a Credit Score
It may seem counter-intuitive, but one way to fix a bad score is to borrow money. And an easy way to borrow money is to buy a car. Some used car dealers offer flexible financing for people with past financial and payment issues. Learn more about how to improve your borrowing ability by calling 303.623.1926.