That’s not some made-up statistic. It comes directly from a consumer credit report study by the Federal Trade Commission. In 2013, the FTC found that one in four reports contains some kind of error.
One of the main benefits of better credit is lower interest rates on all your loans. The interest rates you can qualify for are directly tied to your credit score. Better credit means lower rates.
Low-rate auto loans aren’t the only way that better credit helps you save money. You can also qualify for better rates on your car insurance policy, too. Most auto insurers use what’s known as a credit-based insurance score. Essentially, a low credit score means you pay more for insurance, even if you’re a good driver with a clean record.
There’s nothing more stress-inducing than waiting to hear from a lender if you’re approved for a loan, whether it’s for a home, a car, home improvement or your business. It’s nerve-wracking sitting around wondering if your credit score is strong enough to get you the loan you want. And getting rejected for financing is heart-breaking.
Buying a home is still a big part of the American Dream… as long as you can qualify for a mortgage. Your credit score has a big impact of being mortgage-ready and determining your interest rate.
Whether you want to rent an apartment or a care for your vacation, the property owner will run a credit check. Bad credit means you can get rejected if you try to rent an apartment. Even renting a car can be problematic. If you have bad credit, they may make you put down a deposit to rent the vehicle, which could throw off your vacation budget.
