A credit score is a three-digit number that can impact your life in more ways than one. If you do not currently have a good credit score, then you should try your best to improve it. There are a number of ways that you can benefit from having a good credit score.
Better Chance of Getting a Loan or Credit Card
Your credit score is one of the things that lenders look at before they decide whether they are going to approve you for a credit card or a loan. Your income and debt are other factors that are taken into consideration, so having a good credit score is not a guarantee that you will be approved. However, your chances of approval will be much higher if you have a good credit score.
Lower Interest Rates
It is possible to get approved for a loan or credit card even if you have a low credit score. However, it is likely that you will have higher interest rates. High interest rates will cause you to spend more time paying off the loan. Fortunately, if you have a good credit score, then you will be able to get lower interest rates.
Better Car Insurance Rates
You may be able to save money on auto insurance rates if you have a good credit score. A low credit score is a red flag for many insurance companies. Insurers have stated that people with bad credit have a tendency to file more claims. That is why people with low credit scores are often charged more.
Better Chance of Finding a Job
A good credit score shows that one is financially-responsible. Many employers believe that if a person is responsible with their credit, then they will also be responsible on the job. That is why they may check credit before hiring employees.
Better Chance of Getting Approved for an Apartment
Apartment managers look for tenants who are financially-responsible. They want someone who is going to pay the rent on time each month. If a person has a good credit score, then they will likely be able to pay their rent on time every month.
Avoid Security Deposits on Utilities
Many people have to pay $100 to $200 deposits before they turn on their utilities. Moving is already expensive, so paying this deposit can create another financial burden. Fortunately, this security deposit can be avoided if you have a good credit score.
Maintaining a strong credit score can be hard for many people in this world. Life can be extraordinarily expensive. Keeping up with monthly bills can be overwhelming. People have to pay for cell phone coverage. They have to pay rent. They have to cover food costs on a weekly basis, too. It can be easy to see how some people fall behind on their bill payments. If you want to enjoy a life of maximum convenience, however, it’s essential to maintain a solid credit score.
1. Credit Scores Determine Credit Approval
Credit scores, in short, determine credit approval. If you need a credit card for any reason, your score matters. A low score can harm your approval chances significantly. It doesn’t matter if you’re awaiting approval for a car loan, a mortgage or anything else. A high credit score can always enhance your chances considerably. If you ever want to purchase a home, it’s important to do anything you can to improve your score. If you ever want to purchase a car, it’s important to do the same.
2. Credit Scores Influence Interest Rates
High interest rates can be killjoys for many people. It can be frustrating to pay extra for something that isn’t at all tangible. If you have a credit score that’s on the low side, however, high interest rates will probably be your reality. That’s why it can be so smart to strengthen your credit score. If you have a good score, you’ll be able to get access to markedly better terms and rates. Those things can be great for keeping your costs down. Why spend your valuable money on boring interest rates when you can put it toward something a lot more worthwhile and meaningful, anyway?
3. Good Credit Scores Make it a Lot Easier to Rent Property
Lodging is essential for anyone in this world. If you want to be able to rent an apartment or home, you need to be able to show your landlord that you’re dependable. A good credit score can serve as proof of your reliability.
4. Strong Credit Scores Allow You to Help Others
A strong credit score can also help you help others. If you want to help someone who needs to rent an apartment, a good score gives you the ability to serve as a cosigner.
5. Low Scores Can Be Difficult to Reverse
Low scores aren’t easily reversible. If you don’t want to have to deal with bad credit for years on end, you should try not to let it get out of hand in the first place.
6. Bad Scores Can Be Costly
Bad credit scores can be incredibly expensive. People with low scores often have to fork over substantial amounts of money to cover electrical company deposits. That can put a damper on anyone’s mood!
When your debt starts to become overwhelming and you are having trouble making payments or if you just want to get fewer payments with lower interest rates, debt consolidation can be a good idea. One way to consolidate debt is to use a credit card balance transfer. Here are seven ideas for using a balance transfer to consolidate debt.
Get a lower interest rate
Credit cards often induce people to transfer balances with a low introductory rate. Depending on how good your credit is, you might even be able to get 0 percent interest for a period of time. Transferring other debt to a card with a low introductory rate can help you make a dent in your debt.
Get a lower monthly payment
With a lower interest rate, it can make your monthly payments lower, which can help you free up money in your budget that you might be able to use for another purpose, such as saving for a down payment on a house. Consolidating debt on a balance transfer credit card can help you get a lower monthly payment.
Reduce number of payments
If you have balances on several credit cards, it can be hard to keep track of all the payments and can make it more likely that you will miss a payment or pay late. Consolidating several payments into one by using a credit card balance transfer can make keeping track of your debt easier.
Take advantage of rewards
Some balance transfer cards offer rewards, such as cash back or airlines miles, for people who move money onto the card. So by doing so, you can actually gain financial benefits for your balance transfer.
Consolidate other debts
You can use a balance transfer to consolidate other debt besides just credit card debt. You can move student loans, car loans, personal loans and other types of loans onto your card.
Improve your credit
You might be able to boost your credit score by consolidating debt on a balance transfer credit card. Having one payment and a lower interest rate should make it easier for you to handle your payments and pay them on time, which will boost your score. Lowering the amount of debt you have also will improve your score.
Make a big purchase
One idea for a balance transfer is to use it to make a large purchase. You can buy the item on your regular credit card and then transfer the balance to a card offering a low introductory rate to pay it off with few if any finance charges. That’s much cheaper than using a regular credit card or store credit card and paying double-digit interest rates.
Title loans have been gaining in popularity since traditional banks have tightened up their qualifying requirements as a result of the recession. It is not only difficult to qualify for a bank loan with poor credit, but it usually takes forever to receive your loan funds. Today, people are relying on title loans for no credit checks and fast cash. Before jumping into a title loan, make sure you understand the title loan process.
Is the Lender Licensed to Operate?
Make sure the title lender you choose to work with is licensed in your state. Take a few minutes to learn the state regulations that apply in your situation. State regulations can help to protect consumers from overly high interest rates, or they may cap loan amounts.
Acceptable Vehicles for Title Loans
Before filling out an application, you may want to check with the lender to determine what types of vehicles are acceptable and the auto age limits. Most lenders provide title loans on motorcycles, cars, vans, trucks and SUVs.
Conditions for Getting a Loan
Each lender can set their own loan requirements, but many lenders have similar requirements like these:
• Applicants must be a minimum of 18 to legally enter into a contract. They must produce a state identification card or a driver’s license to confirm their age.
• You may need to present the vehicle’s registration to prove you are the owner of the car.
• You’ll be required to turn over the title to the vehicle to be used as collateral for the loan; however, most lenders still allow you to drive your car.
• Most lenders require a clear title, which means there cannot be any liens against the automobile.
• Automobiles must be in running condition to meet collateral requirements.
• Be aware that a few lenders impound your car, and you lose the use of your vehicle while carrying the loan.
Understanding the Terms of the Loan
Many lenders go to great lengths to explain the terms of the loan. Most title loans are short-term loans that have a term of 30 days to repay the loan. Some loans vary greatly in interest rate charges, which can increase payment amounts greatly. Make sure you understand the length of the loan, the rate you are paying and whether the loan can be rolled over into a new loan.
Applying for a Title Loan and Getting Approved
The majority of lenders have a simple online application that only asks for minimum information about your auto and your contact information. Lenders offer a number of flexible income sources, which makes it easy to qualify. Loan approval and payout typically takes a total of 24 hours or less.
Title loans can be helpful if you are strapped for cash. Just make sure you read the contract carefully and understand your responsibilities.
Taking a loan can uplift your financial situation or it can drown you financially; depending on the decisions you make. When settling for a loan, consider these factors:
The interest rate is a crucial factor you should consider; regardless of the type of load you wish to apply. The interest rate is a vital determinant of the total amount of cash you need to pay back at the end of your borrowing period. Make sure to inquire if there is any other additional fee required for the loan. Such costs include the original fee, loan application fee, broker’s fee and processing fees among others. The fees may have no impact on the interest rate. However, such costs may be included in your monthly payment.
Duration of loan
The length of the repayment period also determines the total cost of your loan. Various loans are repaid in varying durations as offered by different financial institutions. The longer the duration, the more it costs in interest. An excellent way to make a right choice is by consulting with your bank or other financial institutions.
During the repayment period, you may decide to pay your loan early to minimize the cost. If you think you may be capable of paying your loan early, be advised that some loaning institutions may charge you prepayment penalty. The prepayment penalty is a fee that one pays when they clear their loans early. Ensure you make inquiries about repayments penalties and how much they may cost before deciding on the loan.
Some financial institutions require that you make a down payment amount which varies with the lender. Home equity loans do not require down payment, and the house is used as collateral. There are some benefits associated with down payments. Most institutions require a minimum of three to five percent down payment. The larger the down payment amount on a load, the lower your cumulative cost will be. Another benefit is that down payments help lessen monthly payments.
The type of loan
There are several options to select. The types include personal credit, mortgages, student loans, equity loans and auto loans. These mainly depend on the purpose for which you are getting the loan. You can also choose from the secured or unsecured loan options based on your credit points and your credit history.
Prevailing financial situation
Your current financial situation is critical in determining how much loan you want to borrow. You can assess your monthly and annual spending to help you decide the number of monthly payments and the amount you can afford. Considering your prevailing financial ability ensures you do not make unwise financial decisions.