Credit Can Affect These Monthly Bills

Credit is the primary factor in proving your borrowing worth to lenders, so to speak.  While income and current debt liabilities do factor in, credit score can give an overall picture as to whether or not you will not only be approved, but what interest rate you will secured, or even have the application turned down.  While there are some obvious monthly bills that are affected by your credit score, there are others that may come as a surprise just how much your credit affects other payment obligations as well, so it is important to get your score as high as you can.

Mortgage, Credit Cards, Personal Loan

The most obvious that you credit will affect any application you put in for a mortgage, credit card, or loan from the bank.  Not only will your credit be a major decision in your loan approval, it will also decide what interest rate you will be granted.  Depending on the size of the loan whether it is for a car or even larger for a home purchase, even a small percentage of an increase in rate could cost you hundreds to thousands in extra interest payments per year.

Rent

While it can be tough to secure a mortgage with the tight standards, you will be surprised that even getting approved for rent by a potential landlord can be difficult if you have poor credit.  Landlords want to ensure that you have not only are able to afford the rent payment, but also that based on your history, if you have a pattern of on-time payments.  If your credit score gets too low not only could you be out of getting a mortgage, but it could cost you being able to be able to even rent a place to live.

Car Insurance

A little surprising when it comes to how your credit score can affect other necessary monthly bills is car insurance.  The first thought that comes to mind is what does insurance have to do with credit score, but fitting the theme of granting money, insurance companies also want to make sure that you are a responsible borrower before they will approve insurance for you, and all the more reason to have a great credit score so you don’t have to pay any extra in insurance premiums than you already have to pay each month.

Auto Lease

Basically, every car commercial you see if offering a payment for a hundred or two each month, and by now you realize that after all of the fine print and taxes added in, it really is more like a few hundred a month for a new lease.  While that may be true, that is also assuming that you have great credit, but if you don’t, that $300 a month for a new car can turn into $350 a month pretty quickly with a boost from the finance department, or even not being able to be approved at all.  So, with now home, insurance, and car, credit affects almost every aspect in life.

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