Why Is Credit Important?

Having a good credit score is important for making financial decisions. Companies look at your credit to determine your financial standing and
whether you’ll be able to keep it up. Here are some reasons why credit is important.

It Affects Mortgages

When you’re purchasing a Tampa house, having good credit works in your favor. Mortgage lenders want to ensure that you won’t default on your payments. A good credit score equals less risk for the mortgage lender, increasing your chance of getting the deal.

Moreover, a poor credit score, even if it does get approved, will cost you a higher interest rate.

Required for Auto Loans

Likewise, your credit will affect your application for an auto loan. If you have a better score, you’ll have a higher chance of being approved and that too at a lower interest rate.

Needed For Employment

Good credit indicates that you’re financially responsible, and that’s something employers usually look for. Therefore, your prospective employer may want to check your credit report in the hiring process.

Poor credit might lead you to lose the job despite your qualifications.

May Be Required for Utilities

In some cases, utility services, such as telephone, cell phone service providers, water, electricity, and cable companies do credit checks before accepting your application.

Thus, it’s important to have good credit since it pretty much impacts every facet of your life. Learn more about how we can help you improve your credit!

What Hurts Your Credit?

The Credit Repair Services Locals Trust

Living in the US, good credit is imperative for getting loans and employment opportunities. That’s why it’s important to know which things could be hurting your credit score. Here are some of them:

• Late Payments: If even one of your payments is late for over a month, your credit score might go down.
• Hard Inquiries: Whenever you apply for a loan or a mortgage, the lender will conduct a hard inquiry on your account. Every subsequent inquiry hurts your credit, even if you’re not approved for the loan.
• Not Paying Bills: Besides your credit card bills, paying all your utilities on time is also important. Late rent or utility payments impact your credit negatively.
• Canceling Zero-Balance Credit Cards: Do not cancel your credit card even after paying the debt. It affects your credit score by shortening your credit history’s age and raising the credit utilization ratio.
• Low Credit Diversity: Having only one credit card can be problematic for your credit score. Instead, have a mix of installment and revolving credit types to improve credit.
• Co-signing Applications: If you co-sign the credit application of a friend or family with poor credit, you’re taking on responsibility for their debt, which can negatively impact your credit score.
• High Credit Card Balance: A credit utilization nearing your credit card limit could hurt your score. Experts recommend maintaining a utilization ratio of around 30% of your total credit.

If you’re struggling with a low credit score and its negative effects on your life, email or text is at Tradelineconnection today.