Everyone knows that it’s almost impossible to get a bank loan without good credit, but there are more benefits of a good credit score than just convincing the bank.
Bank Lenders & Your Current Credit Score
Loans for a home or automobile are almost impossible to get with a low credit score. A score below 600 tells the bank that that particular consumer somewhat of a risk, and a score below 500 equates to an almost certain risk. Usually, a bank will look for at least a 500 credit score to lend, and that number can increase as the amount of the loan goes up.
Worse still is having a credit score of 0, or no credit. Without credit history, banks and lenders usually require a co-signer (someone with good credit history) to take on the burden of the loan if the client fails to pay or collateral, such as a car to be repossessed to cover the amount of the loan if it goes unpaid.
Obviously, the main benefit of a good credit score is the ability to get bank and lender loans easily. But, there are several more benefits of a good credit score you may not have thought of.
Five More Benefits Of A Good Credit Score
• Credit Card Offers & Approval – A good credit score can not only entice credit card lenders to offer you their coveted Platinum Plans, but help to guarantee your approval.
• Higher Loans & Spending Limits – While of credit score of 600 may get you a few thousand dollars in loan amounts and credit card limits, a score of 800 will likely raise that ceiling into the tens-of-thousands.
• Lower Interest & Financing Rates – Interest and financing rates can put you in debt, quite literally, for decades. A higher credit score will help to lower these rates so you can pay off the principle quicker and get out of debt.
• Renegotiating Power For Current Interest & Financing – Your interest and financing rates on existing loans might not be set in stone. A higher credit score may help you to significantly lower the rates on existing loans.
• Avoiding Security Deposits – Security deposits are often required for utility bills, cell phone contracts, rental agreements, and the like. A good credit score might allow you to decrease, and possibly even completely eliminate, these deposits.
These are only a few of the benefits of a high credit score. The fact is, modern America, even the modern world, runs almost entirely on credit. The better your credit, the better the lifestyle you can lead.
Repairing A Bad Credit Score
Once you’re on the road to a bad credit score, it can be difficult to get back on the right track. In fact, it is fairly common for the credit bureaus to receive the wrong information, or to continue impact your credit long after you have paid off old debts.
Questionable, misleading, and unverifiable reports on your credit history can also be unjustly devastating to your credit score. This is why it is so important for people to keep a tight leash on their credit history.
If your credit score is suffering you might benefit from hiring a credit restoration service to research your credit history and put a stop to incorrect information. Credit Absolute is the nation’s most trusted credit repair company, and doesn’t charge a dime until they start deleting bad data from your credit report to drive your credit score up.
Contact Credit Absolute today, and start looking forward to a brighter future.