If you do not think about your credit score often, it may be difficult to imagine how one number can have a major effect on your life. The difference between a low score and a high score can be life-changing, however. Here are five ways a great credit score can change your life for the better.
Faster Credit Card Approval
People with poor or no credit scores often have a difficult time getting approved for credit cards. While some people are fine with not having a card, many people love credit cards and the benefits they offer. Credit cards offer rewards like airline miles and cash back bonuses, plus they can help improve your credit score for future purchases.
Easier Home and Auto Loan Approval
Getting approved for a home or auto loan often requires a good credit score as well. While people with lower scores can sometimes still get approved, they often have to jump through legal hoops with large down payments and co-signers. People with great scores have no problems getting approved for loans.
Lower Interest Rates
The interest rates people receive on credit cards and loans depend in large part on how high or low their credit scores are. People with good credit scores get lower interest rates and waste less of their hard-earned money paying interest to their lenders.
Better Insurance Rates
Many people do not realize that their credit score is often taken into account when insurance companies determine your rates. If you have an unfavorable credit report or score, you represent too much of a risk and insurance companies will either not cover you or will charge you at a much higher rate.
Improved Chances of Getting Hired
Another unexpected effect of a poor credit score is that it may reduce your chances of being hired. In most states, employers can look up your credit report to help them decide if they want to hire you. A poor report shows you as an unfavorable job candidate and could cost you the job.
Even if your current credit score is less than perfect, you are not stuck with it forever. Improve your credit score and you can receive the benefits of a good score as well. Read LexingtonLaw.com ratings and reviews and you will see how the right credit improvement company can really turn your life around.