Did you know that the average American today has a credit score of 704? How does your credit score stack up in comparison? If your score is lower than the national average, try not to get too stressed out. We at The Weller Legal Group can help with improving your credit score for the better. In this article we are going to discuss some of the most important reasons to strive to have a good credit score in 2019.
What Is A Good Credit Score?
Before we get into some of the reasons why it is important to have good credit, let’s first talk about what a good credit score is. Generally speaking, a credit score under 579 is considered very poor, 580-669 is fair, 670-739 is good, 740-799 is very good, and anything over 800 is considered exceptional. Currently the highest score you can achieve using the FICO model is a credit score of 850. Very few people will ever make it to this level but it is a credit score that we can all strive to achieve one day.
Getting A Job
This is the first reason we wanted to share with you on why it is so important to try and have the best credit score you can possibly achieve. In the world today, the job market is very competitive and many employers are now doing credit checks, with permission of course, on their prospective employees. This is especially true when it comes to government jobs and some occupations that have to do with the financial services industry. It’s a hard pill to swallow but having a bad credit score could very well get you rejected from the job of your dreams.
Getting Better Loan Interest Rates
The next reason we are going to discuss on why it is so important to have a good credit score is to get better loan interest rates. This applies to all types of loans, whether that be home loans, car loans, or credit cards. It is very important to have good credit so you will be treated fairly by the banks when applying for these loans. The difference between having good credit and bad credit could be thousands upon thousands of dollars over the length of the loan. People who have poor credit will qualify for much higher interest rates than someone who has a good credit score. Someone who has a good credit score will also usually be able to qualify for a much higher loan amount than someone with poor credit.
Getting A Rental Property
Something that a lot of young people today may not realize is that many landlords will look at your credit score when you apply for a lease contract. Looking at someone’s credit score can definitely help a landlord decide on whether or not he wants to approve you for leasing out his property. Someone’s credit score is not the only factor that your landlord will look at but it can definitely influence him in the decision process. When someone has a good credit score it tells the landlord that this person can make their bank payments on time and in the full amount which should transfer over to being able to make rent payments on time too. If you are looking to apply for a lease in the near future make sure to try and get your credit score up as high as possible before you submit your application.
Getting Better Car Insurance Rates
The next reason we wanted to discuss with you is your credit score could affect your car insurance rate. We are not saying you will get disapproved for car insurance if you have bad credit but you may not qualify for special discounted rates that someone else with good credit may qualify for. This can make a big difference over time because car insurance is something that you have to pay every single month. If you can get your credit score up maybe you too can qualify for those special discounted rates.
Getting Utility Services
The last reason we wanted to share with you on why you should strive to have a good credit score is to get utility services to your property. This may come as a shocker for a lot of people reading this but it is the truth. Many utility companies will look at your credit score to determine whether or not they will ask for a security deposit. If you have poor credit the utility company may even ask for a letter from a friend or family member to guarantee to pay your utility bill in case you decide not to pay your bills.
We at The Weller Legal Group hope that the information provided in this article helped you understand some of the reasons on why having good credit is so important to living a good life. Having bad credit can affect many areas of your life and make things much harder than they should be. We at The Weller Legal Group have years of experience in helping our clients with bankruptcies and improving their credit scores. We have offices located throughout Florida, including, Clearwater, Port Richey, and Lakeland. If you have any other questions in regards to filing bankruptcies or working on improving your credit score feel free to give us a call today at 1-800-407-3328.
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