[Disclosure: Lexington Law Firm advertises on Credit.com and Credit.com may receive compensation if you sign up for credit repair services with Lexington Law Firm. Credit.com and CreditRepair.com are both owned by the same company, Progrexion Holdings Inc. John C Heath, Attorney at Law, PC, d/b/a Lexington Law Firm is an independent law firm that uses Progrexion as a provider of business and administrative services.]
Your credit score is one of the most important numbers you have. A high score can open doors for you and increase your chances of obtaining the things you want. However, a low credit score can make it nearly impossible for you to secure a loan.
Why is credit repair important?
Businesses, lenders, landlords and even some employers use your credit score to determine your creditworthiness. The good news is that even if you have a low credit score now, there are steps you can take to improve your score.
So, if your credit score isn’t as high as you want it to be, it’s important to start repairing your credit now. Keep reading to find out why credit repair is so important.
With a lower credit score, you’ll be slammed with higher interest rates when you apply for a loan or credit card. Repairing your credit can help enable you to qualify for more competitive interest rates, which can save you money.
In This Piece
- Purchase a Home
- Rent a Nice Apartment
- Buy a New Car
- Get a Better Deal on Car Insurance
- Reduce Your Stress Level
- Land a Good Job
- Get a Credit Card
- Increase Your Credit Card Limits
- Say Goodbye to Debt Collectors
- Obtain a Loan without a Cosigner
10 Reasons Credit Repair Is Important
Here’s a look at the top 10 benefits of getting credit repair today.
1. Purchase a Home
Do you have a long-term goal of purchasing a home? If so, your credit score is extremely important. Nearly every lender in the country uses credit reports to determine whether they approve a loan application. Don’t risk not being able to turn your dream of homeownership into a reality. Instead, take steps now to boost your credit score so you can buy a home in the future.
2. Rent a Nice Apartment
Not interested in buying a home? Even landlords check credit scores. Even though some landlords don’t have the same credit score expectations as mortgage lenders, you still need an average score to find a decent apartment. If you want to have the most options when searching for an apartment, you need to take steps to rebuild your credit.
3. Buy a New Car
If you want to purchase a reliable new—or fairly new—car, truck, SUV or motorcycle, you’re going to need an auto loan. Most lenders won’t approve a car loan unless you have good credit. If you don’t work toward building your credit score now, you may be forced to go to a buy here-pay here auto shop that notoriously has higher prices. This means higher prices for lower-quality cars.
4. Get a Better Deal on Car Insurance
You might not realize it, but car insurance companies factor in your credit score when determining your premium rates. The lower your credit score, the higher your auto insurance could be. These insurance companies do this to ensure you’re going to make your payments on time. No matter what your score is, make sure to compare auto insurance rates so you can find the most affordable option.
5. Reduce Your Stress Level
According to a recent report, Americans rank finances as their number one stressor. If you’ve had any financial struggles, you know this to be true. Taking the time to repair your credit report and effectively deal with your debt can help alleviate this stress.
6. Land a Good Job
Did you know that some employers, especially in professional roles, run credit checks on candidates before making a job offer? These employers are trying to reduce the risk of fraud and embezzlement by making sure the candidate doesn’t have any major financial issues. If you don’t want your lower-than-average credit score to jeopardize your career, take a closer look at your credit report and take steps to improve it.
7. Get a Credit Card
You’re likely to never qualify for a credit card if you have a low credit score. Credit card companies, even those offered through popular retailers, almost always check the applicant’s credit score prior to approval. If your credit score doesn’t meet their minimum qualifying level, you’re likely to be rejected instantly. However, bringing your score up just a little bit may be enough to help you get approved for your first credit card.
8. Increase Your Credit Card Limits
Already have a credit card? Then a higher credit score can help you, too. While credit card companies consider a number of factors, a general rule is that the higher your credit score, the higher your credit card limit. So, if you want to increase how much you can charge to your credit card, your first step should be to improve your credit score.
9. Say Goodbye to Debt Collectors
Calls from debt collectors can be annoying at best. If your debt is legitimate, they can continue to call you for years. The good news is that you don’t have to live like this. You can say goodbye to those annoying calls by developing a debt repayment plan that helps you repay what you owe, improve your credit score and say goodbye to these debt collectors forever.
10. Obtain a Loan without a Cosigner
If your credit score is low, many lenders may require you to have a cosigner. Not only are cosigners hard to find, but this type of financial partnership can put a strain on a relationship. Avoid the need to search around for a cosigner by building up your credit score so you can get a loan on your own.You can take steps today to rebuild your credit by developing a comprehensive credit repair strategy. Or, meet with a credit repair specialist today at Lexington Law or CreditRepair.com who can walk you through the process and help you realize your dreams faster.
Article updated. Originally published December 5th, 2018.
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