Put on a suit and dress up all you want—what you wear to the bank probably isn’t going to determine whether you get that loan. No matter how hard you try to impress your lender, it is your credit score they want to see. If you have a spotty record when it comes to borrowing and paying back money, it can make a lot of things more difficult. Be smart in managing your credit, or you could end up experiencing some or all of these consequences:
- Big purchases can be much bigger with bad credit—Interest rates on mortgages or auto loans will be much higher for you if lenders consider you high-risk. Even worse, bad credit could mean that you won’t be able to get a loan at all.
- Bad credit can affect your living situation, even if you’re not looking for a loan—Many landlords consider credit score to be one of the most important factors in deciding who they want to rent to. Poor credit can result in you needing to find a family member or friend willing to co-sign a lease with you.
- Your credit history can even affect your ability to find employment—Many employers check credit reports during their hiring process and may be less likely to offer you the job if you appear financially irresponsible.
- Protecting yourself from a rainy day can be much harder—Insurers check your credit before establishing the rates for your plan or deciding whether to offer you coverage at all.
- A bad credit score can even affect your daily services and amenities—Cell phone plan providers, cable companies and even utilities like the electric company will also conduct credit checks.
What did you miss?
Did you miss last week’s blog about ‘Handle the Pressure or Your Tires Could Fall Flat’? Click here to read more about tips to maintaining correct tire pressure during this winter season.
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