Why repairing credit should be your priority?
Credit has become a prominent aspect of our lives, having a major impact on our financial freedom. Incidents like late or missed payments might seem minor but these can drop your credit score and prove to be a hassle, especially when:
Applying for a loan – When applying for a loan, low or poor credit is clearly linked to high risk. As lenders are becoming more aware and strict when approving new loans, they expect the borrower to make a substantial down payment, besides having an excellent credit score. Thus your poor credit score can lead to trouble when determining your suitability to get or repay a loan.
Determining interest rate – Credit score impacts the interest rate you pay on your current home loan, college loan or auto loan. Interest rate is generally calculated considering the condition of your credit report. In case your credit report shows bankruptcy or late payments, then you will be required to pay higher rate of interest, in comparison to what you might have paid if you had a high credit score.
Looking for employment – Not only lenders, but even employers these days look into the credit history of their prospective employees as it shows how responsible and credible an individual is. In todayâ€™s competitive job market, employers do not want to take a risk by hiring a person who is not even responsible enough to handle his finances.
Whether you plan to repair your credit on your own or hire a professional company to handle it for you, credit repair is a crucial step that should be taken at the earliest to ensure a pleasant and stress free financial future.