Some people may put off repairing their bad credit thinking that its a waste of time and money. But having bad credit doesn’t just mean being turned down for loans and credit cards. But it leads to higher interest rates, higher insurance rates and may even cost you your dream job!
Why you should make it a priority to repair your bad credit.
1. Get the best interest rate. The higher your credit score is, the lower your interest rate would most likely be. This proves to be true whether you are applying for a loan or a credit card. In fact, you can even get the lowest interest rates from insurance companies – whether it’s on your auto insurance, life insurance, or home insurance, if you have an excellent score.
2. Eliminate security deposits. If you have bad credit, your only option to get approved for a credit card or a loan would be to submit security. Lenders can ask you to pay cash deposit or submit collateral to minimize the risk of payment default. On the contrary, if you have an impressive credit score, it shouldn’t be difficult for you to get approved.
3. Get a higher credit limit. Having a higher credit line is a big advantage because it can protect you from exceeding or maximizing credit usage. Needless to say if you have bad credit, a creditor would surely restrict your credit limit. Read more about why Positive Reasons Why Repair Bad Credit