This Halloween season, we’re sure you’ll come into contact with plenty of spooky situations, but one of the scariest things you can encounter is a poor credit score. And what’s even scarier than having a bad credit score are the ways it could be hurting you.
You Could Pay More in Interest
The better your credit is, the best interest rates you can qualify for when taking out loans. If you have a bad credit score, you will end up receiving a higher interest rate and pay way more than you would have to if you have a higher score.
You Could Have Higher Auto Insurance Rates
A lot of car companies believe bad credit and bad driving are somehow related, so it’s not uncommon for them to check your credit score when you try to buy insurance. If it’s on the lower side, your car insurance could be higher than you expected.
You Can Miss Out on Rewards
A lot of credit cards offer travel points or cash-back options that get you free stuff, but you have to be approved for those kinds of cards. Thing is, you often won’t get approved if you have bad credit, so you end up missing out on all the perks you could be enjoying otherwise.
You Might Have to Forfeit Your Dream Home
If you have a bad credit score when applying for a mortgage, you could receive a much higher interest rate or be forced to find a cosigner — that is, if you get approved in the first place. That could, unfortunately, force you to give up your dream of owning your dream home or any home at all.
Improving your credit score can be difficult, but it’s easier with the help of a financial advisor. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From managing your cash to retirement planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.
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