Higher house payment.
Are you in the market for a new home? If your credit is spotty, then you’ll likely pay tens of thousands of dollars more in finance charges.
Now that you have your new house, you must insure it. According to The National Association of Insurance Commissioners, 85% of home insurers use credit-based insurance scores in states where it’s deemed an underwriting or risk classification factor. So, if your credit takes a dive, your homeowners insurance may go up.
Private student loan rates.
Federal student loan rates have interest rates that are set annually by the government. With private loans, that’s not the case. If you are looking at private student loans to fund your college education and you have a poor credit rating, your student loan interest rates could go into the double digits.
Your future spouse.
No one likes rejection, and it still hurts whether it’s due to a lack of chemistry or some other reason – like your credit history. A whopping 75% of women and 57% of men, say credit scores play a role in their dating decisions, according to a survey of 1,000 single adults from FreeCreditScore.com. Most respondents said that money management skills were just as important as looks in deciding if someone was worth pursuing.
Are you a numbers person?
According to a study by Syracuse University, below is a breakdown in dollars and cents of how much extra you could pay on the things you need credit to acquire.
Wondering if you have bad credit?
There are a couple of easy ways to find out where your credit stands.
Knowledge is power.
Knowing the basics of credit reports and credit scores shouldn’t be hard. The resources below offer further understanding of credit and what steps you can take to improve yours.