Your credit score is important. Period. But why? Quick Loans Express explores 10 vital reasons why you should repair your credit score!
Reasons to Repair Your Credit Score
Everyone knows that if you have a bad credit score, you’ll find it difficult – if not impossible – to access major financial products. You might believe that having a low credit rating doesn’t matter as you’re happy with your life as it is. However, having a poor credit score can have an impact on all parts of your life. This is especially true when you want to make some important, and possibly life-changing, decisions. In this article, we look at 10 very good reasons why you should repair your credit score. You can all read about 8 great ways to improve your credit score here.
Taking out a Mobile Phone Contract
If you wish to have a mobile phone contract, your provider will check your credit score as standard industry practice. You could be turned down. You’ll still be able to get a pay-as-you-go card, but tariffs tend to be more expensive with such cards. Most of the special monthly deals are only available to those who have a contract. Why pay more to keep in touch with friends and family?
Renting a Home
Private landlords also carry out a credit and identity check of prospective tenants before letting their property. You might find the ideal home and then be unable to rent it because your poor credit score makes you a risk. You can get around this by asking someone to act as a guarantor but do you really want to rely on others for such a basic human need as housing? And how embarrassing to have to ask.
Arranging your Utility Bills
Even once you have somewhere to live, your troubles aren’t over. Energy providers might be concerned that you won’t be able to pay your bill. Therefore, tenants with a poor credit score might have to have a meter installed. The tariffs for such meters are the worse of all, and you won’t be able to take advantage of special deals.
Job Applications & Promotion
Some employers have a credit report done as part of the recruitment or promotion procedure. You must give your consent for this to be done. Although the report won’t show all the details like a credit application, they will be able to pick up on major problems.
Employers tend to do this if your job position requires the handling of money, accounts and/or sensitive data. The way you deal with your personal finances can reflect on how well you’ll do your job. Other employers check because they’re concerned that worry over financial difficulties will directly affect your job performance. Do you want to miss out on your dream job because of a low credit rating?
Starting up a Business
Maybe your ambition is to enjoy the independence of being your own boss? It’s very difficult for you to start up a business alone without borrowing money. Without a healthy credit score, many financial institutions will reject your credit application. Their reasoning is if you can’t deal with your own finances, how will you cope with the additional strain and complexity of business finances? Could your poor credit score prevent you from achieving your dreams?
Living without a Credit Card
Much is written in the press about people using their credit cards to spend recklessly. What you mustn’t forget is that credit cards are extremely convenient ways to make major purchases. You can spread payments over a few months, be protected by Section 75 of the Consumer Credit Act and receive additional bonuses like cashback.
Borrowing Money Urgently
All of us sometimes face occasions when we need money urgently, but we haven’t got the cash to hand. Putting the purchase on a credit card can save a great deal of hassle. Without this possibility, you’ll have to use high-cost short-term credit facilities like a payday loan online. It’ll help you out of a tricky spot but is one of the most costly ways to borrow.
Higher Costs for Credit Facilities
Your credit rating might be poor but not low enough to have your credit application turned down out of hand. In these cases, financial institutions will grant your application but will cover the extra risk you represent by charging you higher interest rates. Therefore, the APR you pay will be significantly higher than someone with a good credit score. Why should you pay more money to access credit?
Impact on your Partner
You might find that you’ve met the right person and you want to take the relationship one step further by settling down. Maybe this means moving in together, or you may think it’s the right time to get married. You and your partner will inevitably share a financial agreement such as a shared tenancy, utility bills or bank accounts in your joint names. However, as soon as your names are linked financially in this way, your poor credit score will adversely affect theirs. Is this really fair? Or will you put the plans for your personal life on hold until the matter is resolved?
Taking out a Mortgage
You may think you’ll never want to become a homeowner but circumstances change. If you’re moving in with someone, you might feel it’s time to buy a house. Why should you carry on paying rent and not see a return on your money? Mortgage providers are much stricter in their lending criteria nowadays. With a low credit score, you’ll find it extremely difficult – if not impossible – to find any lender willing to take you on.
In this article, Quick Loans Express, a fast loans lender, explored 10 reasons why your should repair your credit score. This is because, having a lower credit rating can affect you in ways that you can’t imagine and can end up costing you money. Repairing your score takes patience and time. You never know what the future holds and how your life will change. Isn’t it time you started to get your finances on track and repair your credit score? It’s a decision that you’ll never regret.