It's Not Just Your Mortgage: 5 Other Things Impacted by Credit
"Credit? How can that help me?" is something we all say when we're in high school. However, as we age, credit becomes a pinnacle in our lives and helps us build our futures. It is a crucial player when purchasing a home, but it significantly impacts other aspects of our lives. Check out five of the situations in which credit is a significant determinant.
Buying a Car
Everyone needs wheels! But, to get them, you need a good credit score. Why do you ask? Cars are expensive, and to afford them, we need loans. To get a loan, you need to have a good credit score to get the lowest possible interest rate and, therefore, the lowest possible monthly payment.
Renting an Apartment/Condo/Property
When contemplating renting an apartment, the property managers will pull your credit to see if your payment history reflects financial responsibility. Ensure that you have a good rapport with your previous landlords because they could vouch for you if your credit score is less than impressive. The landlords want to be sure you can make your payments to them each month.
Insurance plays an integral role in making sure your most important possessions, such as your car or your home, are taken care of if something happens to them. The rates of your insurance take into consideration your credit score. It is essential to keep this high because companies can give you the lowest possible interest rate, which means less money you have to shell out in the long run. It can even affect how high your payment will be each month. The less money spent, the more you have in your pocket.
Applying for Credit Cards or New Checking Accounts
Whenever you are applying for a new line of credit, your previous credit history is always first to be inspected. Banks don't want to gamble on whether you're going to make your payments that month or not. So, to prevent any risks on the bank's part, they raise interest rates of credit cards to ensure you are more incentivized to make your payment on time if you have poor credit. To get the best possible rates and credit offers, make sure your credit score remains the highest it can be.
Are you looking to fund your college education yourself? Make sure your credit score is high. If it isn't, you could get a higher interest rate on your loans, which means you could be paying thousands of extra dollars over the life of your loan. With education being of the utmost importance these days, ensure you get the best possible deal on your educational loans by having stellar credit—no use in throwing valuable dollars out the window.
Credit makes our world go-'round, and if you have any questions on how your credit can impact you, please feel free to contact me.