While most of us are concerned about how we feel behind our brand new wheels, in our new home, or after buying all the things we can with our credit card, we rarely stop to think about how the choices we make can make or break our future.
These transactions determine your credit score, which, in turn, greatly impacts your personal finances in the long-term. Having a great credit score can get you anywhere in the U.S, but what happens when you have a low score?
Here’s how it will affect your financial stability.
Acquiring A Loan Will Be Difficult
If you’re thinking of applying for a loan and have a low score, you might have a harder time getting it approved than your peers who have a higher one. This means that even if you are close to your vendors’ quality level cutoffs, a huge majority of them won’t approve your loan.
This also means that even though there is little difference between 697 and 702, if 700 is considered a good score, the five points make a real difference.
Approved Loans Will Have Higher Rates And Stricter Terms
Even if you somehow manage to get your loan approved, a low credit score will have a high interest rate attached to it, which will increase your payoff duration and will leave you with little money for other expenditures.
According to the Bank of America, higher credit scores help you get better mortgage interest rates.
You Might Face Issues When Trying To Rent An Apartment
A low credit score can also make it harder for you to rent an apartment because property owners are most likely to run a check on credit scores to make sure if the person is reliable enough to be trusted with the responsibility of rent payment.
Most property owners avoid tenants who have a history of late payments, foreclosures, and delinquencies.
If you want to fix your credit score for renting an apartment or getting your own house in Spartanburg County, SC, get in touch with our team at Masters Credit Consultants today!
We offer specialized credit counseling and credit restoration services to make sure you get to live your best life. For more information, call us at 1-844-620-8796 or email at firstname.lastname@example.org.