Your credit follows you everywhere you go, and having bad credit can make life a lot more difficult. Credit is an unavoidable part of life for almost all consumers. You'll need it to finance big purchases like a car, house, or college education, or to take advantage of things that you can only do with a credit card. Understanding the role it plays in your life will allow you to see exactly why your credit is important.
The Role Your Credit Plays in Your Life
Many people will be looking at your credit situation to make decisions about you.
Anytime you need to borrow money, your credit is going to be checked. Credit card issuers, banks, credit unions, auto lenders, mortgage companies, you name it. They will all look to your past credit behavior when making approval decisions.
Many landlords will check your credit score as part of the rental application process. A bad score generally indicates that you aren't a responsible borrower, so they may turn you away.
- Potential Employers
Even some employers may check your credit reports before offering you a job. Sure, it's only one of many factors considered, but it could potentially cost you a career opportunity.
- Utility Companies and Phone Providers
In some cases, even these places may not approve you if you have bad credit.
Don't Let Bad Credit Control Your Life
A tarnished financial history can hold you back in so many aspects of life. One disruption (like an unexpected job loss or medical bills) can create a snowball effect that leaves you with bad credit for years. Worse yet, bad credit can increase the interest rates and insurance premiums you pay, which takes an additional toll on your finances.
If you've been dealt a bad hand and have bad credit as a result, the only way to get to a healthy financial future is to improve it. Make it your top priority to understand:
- How to get your credit reports
- How your credit score is calculated
- What is bringing your score down
- How to effectively build good credit
It will take some hard work, but it will be so beneficial for you down the road.
Auto Loans Help You Build Credit
The importance of maintaining good credit should be plain to see. If you need to rebuild your credit, a good place to start is borrowing money and paying it back on time. At Drivers Lane, we can help you achieve that with an auto loan. This type of installment loan is just the thing to get you started on your path to improved credit! Just fill out our free and secure no-obligation application to get started today.