Some people might think their credit score and report don’t matter because they aren’t thinking of making any big purchases. The reality is your credit data affects you in many ways, which is why you should care about improving it as much as possible. The following are a few ways your credit health affects your life.
Interest Rate Spikes
You might use a credit card every day or often. If this is the case, those with a poor score will likely have higher interest rates. This means you end up owing more than folks who use the same card because your score isn’t stellar. The extra money you owe is money you shouldn’t have to pay. It’s a fee you’re merely giving away because you haven’t taken action and fixed your credit score. If you want to keep more of your cash, then find ways to improve your score.
When you start looking for an apartment, you’ll feel the weight of your score even if you don’t know it. A person with a low credit score gets the short end on the stick when looking for an apartment. Some landlords ask a person with a low score for a bigger deposit. Coming up with two or three months’ worth of rent in advance can be challenging. Some folks with low scores end up getting denied which might mean living well below your means, saving up, and then buying a place to occupy or rent out long-term could be a better option.
Your credit could be impacting your job opportunities. Approximately 29 percent of employers check potential employees’ credit reports before hiring. This could even be a factor in getting promoted or not. If you want to remain in control or regain control of your career, you should improve your credit score and report. There’s no doubt this is going to be challenging. You’ll have to budget to pay off your debt, and you may have to work on controlling the way your money gets spent. In the end, you’ll feel better knowing that you’ve regained control.
Getting a Phone
Everyone has to have a phone, and having the latest one is ideal for most folks. The good thing is phone companies are more than willing to give a nice phone to folks with good credit. If you have bad credit, you might not be able to get that latest device and might even be forced to settle for prepaid phone alternatives. Keep in mind that new phones can cost thousands. Folks who ask for a loan might get denied if their score is low. If you don’t get rejected because of your low score, the company might ask for a higher deposit. You don’t want to deal with all these issues just to get your phone, and you don’t have to if you take your credit seriously to see what you can do.
Everyone wants low insurance premiums, but not everyone is going to get them. You’ll need to work with an insurance company at some point in your life. You might need this to drive legally or to get health insurance. You can’t be denied these types of insurances because of your credit, but it can still affect you. You could end up with high insurance premiums, depending on the state in which you live. Work on improving your credit so that you can negotiate better terms with your insurance company.
These are just some ways credit scores can affect your everyday life and how you can turn to professionals like Plymouth Associates for help. It’s in your best interest to boost your credit score. The sooner you start, the faster you’ll get to where you want to be.