Most people with credit history problems know they have a low credit score, but do little to correct the issue. It may be tempting to think that a low credit score only matters when you’re trying to get a credit card or house, but that’s not the case. Your credit score affects your life in more ways than you can imagine and it’s worth the effort to bring your score up quickly. Here are five reasons why you should repair your credit score immediately.
Save Money on Interest
Fixing your credit score is worth the price because it will pay for itself in savings for the individual. In any situation that involves interest, low credit scores usually equate to higher interest rates. This dynamic means that people with lower credit scores are paying higher finance charges for things loans and credit cards. Repairing your credit gives you the chance to renegotiate your debt at a better rate, which can save you thousands of dollars in financing fees.
Lower the Amount You Pay for Security Deposits
Even when you aren’t taking out a loan on interest, a low credit score could lead to higher prices for you. For example, when utility service providers are deciding on the security deposit you will pay before allowing you to establish service, they check your credit. If you have a low credit score, they may charge you a higher security deposit to offset any risk. In many cases, utility providers will return the deposit if you make your payments on time. However, improving your credit score prevents you from having to pay high-priced security deposits in the first place.
Get a Lower Insurance Rate
Home and auto insurance are also examples of non-loan situations where your credit score is considered. Your credit affects your insurance premiums. Like many utility companies, insurers use your credit score to determine how much it will cost to provide insurance coverage your home, health or vehicle. If two people with identical cars go to the same insurance company and get the same coverage, the person with a bad credit history will pay more per month for their plan. Once you get your credit repaired, you can immediately get new insurance quotes with lower monthly premiums.
Get a Higher Credit Limit
It can be challenging to get a line of credit if you have a bad credit history. If you already have a line of credit somewhere, you won’t be able to increase it when your credit history needs to be repaired. Even if your income has increased, a credit card issuer will check your credit score before increasing your credit limit. This means a bad credit history could prevent you from accessing credit that could be used for your business or personal needs. With a higher credit score, you will also have more negotiating ability when speaking to creditors and banks about the interest rate you pay for loans and credit cards.
If you’re ready to start repairing your credit, Alex Miller Credit Repair can help. Our strategy is “The 3 Round Burst!” which allows us to achieve more in less time. Our clients see results every 40 days. With our system, we can accomplish as much in three months as other credit repair companies could do in three years. Use the contact form on our website or call us at 877-503-9737 to get started.