It’s possible to survive with bad credit. However, it’s difficult and certainly not inexpensive. It will save you money and make your financial life easier. These are the top reasons to keep good credit? Do drafty do 6-month loans?
Low-Interest Rates On Credit Card And Loans
Interest rates are one of the costs that you pay when borrowing money. The rate you get will often be directly linked to your credit score. With a high credit score, you will be able to qualify for the lowest interest rates. Additionally, you will pay lower finance fees on your credit card balances or loans. The faster you pay interest, the quicker you will pay off the debt and the more money you have for other expenses.
More Chances For Loan Approval And Credit Card Approval
Because of their poor credit history, borrowers with bad credit ratings are more likely to avoid applying for a new loan or credit card. An excellent credit score is not a guarantee of approval. Lenders still consider other factors like income and debt. Your chances of getting new credit increase if you have a high credit score. With this, you can confidently apply for a loan and credit card.
More Negotiating Power
You can negotiate a lower rate for a credit card and a loan with a high credit score. Your credit score may give you additional bargaining power. You might also be able to take advantage of other offers offered by other companies. Low credit scores mean that creditors will not agree to terms on loans and you won’t be able to take advantage of other credit options.
Get Approved For Higher Limits
Your income and credit rating will affect your borrowing capacity. Because you have a high credit score, banks will lend you more money as you have demonstrated your ability to repay the loans on time. Even though your credit score may be low, you may still be eligible for certain loans. However, the amount will likely be lower.
Approval Is Easier For Apartments And Rental Houses
More landlords are using credit scores as part of their tenant selection process. Poor credit can make it difficult to get into apartments, especially if you have an outstanding rental balance or are facing eviction proceedings. A high credit score will save you time and hassle searching for landlords who will accept renters with bad credit.
Get A Cell Phone With No Security Deposit When You Sign Up For A Contract
One disadvantage of poor credit is that some cell phone service providers might not offer you a contract. You’ll be forced to choose one pay-as-you-go plan that offers more expensive phones. Once established with the provider, you might be required to pay more for your contract. People with good credit can sign contracts to avoid paying a security fee and get discounts on the newest phones.
Avoid Security Deposits On Utilities
You may find security deposits to be a major inconvenience when moving. While you might not plan on moving anytime soon, a natural catastrophe or other unforeseen circumstances may change your plans. A good credit rating means you won’t be required to pay a deposit to set up utility service in your name or transfer service from another location.