Having good credit can mean more than just qualifying for loans and better interest rates. It can significantly lower your monthly expenses and make your life better in many other ways. Yet, many people are not making the necessary effort to achieve higher credit scores.
According to FICO, about 40 million American consumers have credit scores of less than 600. Here is a look at how you can improve your life by raising your credit score.
How Your Credit Score Can Affect Your Life?
Harris Poll conducted a survey in April this year to find out what Americans knew about the impact of bad credit on their everyday lives. It was found that about 49 percent of Americans were unaware that bad credit scores can limit their options for mobile phone services. While it is possible to get a mobile phone service without having to undergo a credit check, you will have fewer options if you have bad credit.
Additionally, 43 percent of consumers did not know that a poor credit score can have a negative impact on the price of auto insurance, and 52 percent were uninformed that it can raise utility deposits. If your credit score is excellent, these expenses will usually be cheaper or nonexistent.
Having bad credit can also limit housing opportunities. More and more landlords are conducting credit checks on potential tenants, but about 23 percent of Americans did not know that their credit scores can affect their ability to rent a house or apartment. Also, having poor credit can even make it more challenging for you to get a job.
How to Deal with Bad Credit?
There are several things that you can do to boost your credit score, starting with checking your credit reports for errors. Mistakes do occur on credit reports, and they can have a significant effect on your credit score. Another way to get rid of bad credit is to pay your bills on time. Create and follow a monthly budget plan to ensure that you will not miss any payment.
Also, you can devise a debt payment plan to pay off your debt in the shortest time possible, which can help improve your credit score. Lastly, you may want to consider finding a lender who offers credit-builder loans or personal loans for bad credit. Getting one of these loans is an effective way to boost your credit.
There is a lot to gain from fixing bad credit. It may take some time and effort to raise your credit score to a desirable level, but it will be worth the while.