Why Is Having Good Credit Important?
What’s the deal with your credit score? Though it seems like common knowledge that a good credit score is desirable, many men and women don’t fully understand how much a bad credit score can negatively impact their lives.
A bad credit score does more than make you less likely to be able to secure a mortgage—it also sends a message to financial institutions that you’re a riskier borrower. This can make it more difficult to secure any type of loan. From an auto loan for a new car to a student loan to help you continue your education, you’re going to be expected to pay a higher interest rate as a type of insurance to the borrower.
Banks aren’t the only ones looking at your credit score. More and more apartment managers and landlords are checking tenants’ credit reports before deciding to rent to them. Credit card companies also use your credit score to determine how much credit to extend to you when you apply for a card. They may even reject your application if your score is too low. Some job seekers have even reported that they were asked by hiring managers for permission to view their credit report, meaning that your credit score may even have an effect on how easy it is to find your next job.
If you have a low credit score, what can you do? The first thing you should do is ensure that all of your credit card bills and loans are being paid on time; an estimated 35 percent of your score is determined by your payment history. Paying more than the minimum balance, avoiding excess credit inquiries, and better budgeting can also improve your score over time. Additionally, programs like PA Auto Credit’s buy here, pay here in Philadelphia, PA can potentially help you build up your score with regular on-time payments.
Is bad credit getting in the way of the auto loan that you need? PA Auto Credit is here to help! Give us a call today at 800-371-1769 for more information on our bad credit car loans in Philadelphia, PA.