A credit score isn’t just a number, it can often be a representation of how you would qualify for some of the largest financial milestones in your life. You have dreams and if you’re planning on buying a new car or getting into a new home, these dreams will depend on your credit score. By focusing on repairing your credit now, you can experience some of these benefits in the future.
Saving Money On Financial Products Later On
Fixing your credit will make sure that you can qualify for a better rate on a mortgage later on. As even a fraction of a percentage point can make a massive impact on the price of a home, you can save thousands over the course of paying down your home. A high-risk loan will often have monthly interest payments of around 6% whereas standard mortgage rates are considered 4%. On the cost of a $300,000 home, this difference of 2% could end up costing you over $110,000 in added fees.
Improving Approval Rates
Whether you would like to initiate a payment plan on a new electronic device or qualify for a new apartment, a better credit score will make sure that you can walk it with confidence and know that you are going to be able to access the financing options you’d like.
Buying Cars With Ease
Car loans can be difficult to apply for if you have bad credit. You might often have to consider a used car if you have a poor credit score and pay a higher interest rate. Buying cars with a good credit score could mean paying the same price for a new vehicle as you would to pay down a loan on a used one.
Keep some of these top reasons in mind why it is advantageous for you to repair your credit today so that you can enjoy improvements in your future lifestyle. This post was written by Kristian D’An, owner of Lux Credit LLC and CCA board certified credit repair specialist. Lux Credit offers credit repair services for those looking to improve their credit!