You may think that unless you intend to take out a loan to make a big purchase in the near future, you don’t need to Improve your credit score but your credit score has a big impact on your daily life. Your credit score affects much more than your ability to get approved for financing.
If you are looking for an apartment, trying to find a new job, shopping for insurance or applying for cell phone service, it is likely that your credit will have an impact on your success.
Why You Credit Score Matters So Much
If you have had some trouble in the past with credit card debt, late payments or maybe even a bankruptcy, you may have damaged credit. And because of your low credit score, you may be dreading the next time you need to buy a car. But that’s the extent of your worries, right?
Unfortunately, having bad credit can complicate several areas of your life, so there are a lot of good reasons why you should work to improve your credit score.
One day, out of the blue, you start to discuss auto insurance rates with a close friend. And even though the two of you are the same age, live in the same neighborhood and have similar driving records, you discover that you are paying a lot more for coverage. Why? Again, your credit is most likely the culprit. It has been statistically proven that drivers with low credit scores file more insurance claims on average than drivers with good credit. So, more than 90% of auto insurance companies use credit data when assigning premium costs.
- Renting an Apartment or Purchasing a Home:
You can’t buy a house because of your poor credit history, but that’s okay. You’ll just rent. After all, you don’t like to do yard work and you love the idea of having a pool. Just be aware of the fact that most prospective landlords and rental agencies run credit checks on potential tenants. And if you have bad credit, you may be required to put up a larger deposit or get a cosigner. Or, your rental application could be turned down altogether.
You’re looking for a job, and you’ve applied for numerous positions for which you are highly qualified. You also interview well and have excellent references, but you keep getting turned down. Why? Your credit could be to blame. They must have written permission to do so, but many employers will review an applicant’s credit report. To them, bad credit may indicate poor reliability or mean that you might have a difficult time focusing at work because of financial stress. Also, for jobs that require direct contact with money or for employment with the government, having a good credit score is necessary.
- Cell Phones:
If you are like a lot of people, you want the latest and greatest cell phone with all of the most up-to-date technology, and you want to get a good deal on your service plan. But most of the major cell phone companies check your credit score before offering a service plan. If you have credit issues, you may be asked to put down a larger down payment or pay extra for your contract. There are companies that provide service without checking your credit, but they may not give you good deals on new phone purchases or upgrades. They may also not even offer the kind of phone that you want.
Improving Your Credit Score
Even if you have severely damaged credit, it is never too late to turn things around. With some work and a lot of patience, you can repair your credit and boost your credit score. Here are a few things that you can do right now to start the credit improvement process.
- Get current with your bills. Being late with any of your payments can cause your score to drop even further. So, if you are behind with any of your responsibilities, do whatever you can to get caught up. Then, rework your budget and set up an organized bill-paying system so that you will never be late again.
- Get a secured credit card. Remember that you have to use credit in order to build (or rebuild) credit. And even if you can’t get approved for a “regular” credit card, you can probably qualify for a secured card. In applying for one of these cards, you will put up your own money as a deposit, and the amount of this deposit becomes your spending limit. You can then use the card as you would any credit card, and as long as you make all of your payments on time, your credit score will gradually increase.
- Buy your next car with a bad credit auto loan. Here’s the car-buying situation that you might be dreading. The good news is that if you do decide to purchase a vehicle you will be pleased to know that we have financing options available for bad credit buyers.
After you have been approved for your auto loan and purchased your car, you will have an excellent opportunity to build your credit with every timely payment you make. You can get the car you need and a chance to increase your credit score. But you first need to find a dealership that is qualified to handle unique credit situations.
Getting an Auto Loan with Overdrive Automotive Center
At Overdrive Automotive Center, we understand that not everyone has perfect credit, and we work with all types of credit situations.
Also, our process is fast and easy. So, go ahead and fill out our simple and secure online application to get started today.