How can a good credit score help you? Introduction
Many of you already know that you need a good credit score to borrow money, get a mortgage, lease a car, get insurance and in some cases, even get a job. But, how many of you know how can a good credit score help you? It can save you thousands of dollars.
How can a good credit score help you? What does your credit score say about you?
Your credit score tells prospective lenders how reliable or unreliable you are at repaying debt. Based upon your credit score you’ll be approved or denied when applying for a loan, credit card, mortgage, car lease…
How can a good credit score help you? How can your credit score save you money?
When applying for any type of loan, your credit score also determines what sort of terms you’re likely to get.
- Insurance Rates: Insurers typically create an “insurance score”, which is largely based on your credit score. With a good credit score, you could qualify for a discount on your premiums. Conversely, a bad credit score can cost you a lot of money annually in higher premiums.
- Loan Rates: With a good credit score you may get a better mortgage interest rate. Over the life of your mortgage this could save you thousands of dollars. The same applies for any type of loan – car loan, personal loan, etc. The more you’re borrowing and the longer the term of the loan, the more money you can save.
- Internet, TV and Cell Phone Rates: Many providers do a credit check before giving you service. With a bad credit score you may be denied service altogether, or you may be required to leave a sizeable deposit as a guarantee of payment.
How can a good credit score help you? What is a good credit score?
An average credit score is around 600. A very good credit score is 700 and above.
How can a good credit score help you? Do you know your credit score?
If not you can find out by contacting either one of Canada’s two major credit reporting agencies – Equifax or TransUnion. Make a habit of checking your credit score annually. If your credit report has information that’s inaccurate or has items unfamiliar to you, it could be a sign that you’re a victim of identity theft.
If you’ve been turned down for loans due to a bad credit score, you need professional help to get back on track financially. A professional trustee can help you solve your debt problems with immediate action and a solid financial plan. Give Ira Smith Trustee & Receiver Inc. a call today to book a free, no obligation consultation and you’ll be well on your way to debt free living Starting Over, Starting Now.
