It’s easy to think that bad credit is no problem from the advertisements in the media. However, have you ever examined the fine print on those “easy credit” ads? You’ll discover that people with bad credit and bankruptcies are paying twice, three times, even four times the amount of interest that a person with good credit pays.
By getting the lowest possible interest rates, you save a substantial amount of money.
It is estimated that consumers with compromised credit pay billions in additional costs per year. Credit grantors, fueled by credit reporting, advance strong competitive advertising campaigns for the most desirable borrowers.
Lower interest rates, reduced annual fees, toll-free customer service centers, customer recognition programs and purchase protection plans are some of the benefits of this rivalry.
Buying a home is the biggest single investment most people will ever make. Your credit history is one of the several important factors used in determining whether you can get a mortgage or not.
One of the details that lenders evaluate when you submit an application for a mortgage is your payment record on things such as credit cards, car loans, rent and related commitments.
If you intend to start a business, credit review and scoring is important as a means for your financiers to evaluate your capability to handle the related risk and the possible losses resulting from charge backs and fraud. You will make the decisions for your business and have control of the credit card processing, and your good credit is an indication of your financial responsibility.
Blemishes on your credit record can have an effect on not only your ability to get a job, but also to lease an apartment or purchase a car.
Making numerous requests for credit, paying credit card bills late, and having a great deal of debt could lower your credit score.
Learn to keep track of how much you spend and on what. Try to find any area that’s way out of line – it may be something as noticeable as eating out or as surprising as dry cleaning bills – where you can curtail spending and save some cash.
Make a budget – it is the first step to your financial freedom. Before you can devote yourself to increasing your money, you need to know where it goes.
In addition, you can be eligible for all kinds of 0% interest, low interest, cash back and rewards credit cards if you have a good credit score. You can in fact make money off the credit card companies with a first-rate credit rating.