How Does a Positive Credit Score Affect Your Life?

Did you know that credit scores didn’t exist until 1989? For a rating that didn’t exist until 33 years ago, the credit score has an amazingly profound impact on your life. A high credit score will open doors to opportunities and a low credit scores will close those same doors.

Since this is the case, many people are looking for ways to raise their credit score. Some improve their credit score by paying rent and then adding rental history to their credit report. Others use credit cards to pay the majority of their bills. Whatever the methods used, increasing your credit score has many benefits. 

Benefits of Having a High Credit Score

  1. You will have easier access to car loans

Your credit score is what deems your creditworthiness to lenders and when you have a high credit score, getting a car loan becomes much easier. It isn’t often that someone has enough cash to buy a car outright. That is why car loans are so popular. A high credit score makes you less of a liability to the lender and you are more likely to be approved for a loan. 

  1. Renting a home

If you have a low credit score, there is a higher chance that your application will be passed over when looking to rent a home. A high credit score tells the landlord that you are responsible and trustworthy with your bills. That is why you should add rental history to your credit report as soon as possible and improve your credit score by paying rent.

  1. Setting up utility accounts

Utility companies will look into your credit score when you are first setting up an account with them. Occasionally, if you have a really low credit score, they might deny you access to their services. Most often, if you have a low credit score, they will demand a large up-front deposit to secure the account. If you improve your credit score, by paying rent or in any other fashion, will increase the chances you will be able to set up utility accounts without large deposits.

  1. Better rates for any type of loan

Not only does having a high credit score help you be approved for loans, but it can also help you secure better rates for the loans you are approved for. Lenders look at your credit report to determine if you are a risk to lend to and determine their rates based on what they see. If you have a good credit report, something that can be improved if you add rental history to your credit report, you can get better interest rates, meaning that you will pay less overall when paying back your loan.

  1. Easier to get approved for a mortgage.

Mortgages are the principal way of purchasing a home. Almost 63% of homeowners currently carry a mortgage. You are more likely to be approved for a mortgage if you have a high credit score and the benefit of a mortgage payment is that it adds to your credit report. To have the same effect when you are renting, you can add rental history to your credit report and improve your credit score by paying rent by using

Improve Your Credit Score by Paying Rent

There are only upsides to having a high credit score and these are only a few of the reasons why. Don’t let a low credit score negatively affect your life anymore. Contact today and add rental history to your credit report to begin reaping the benefits of a positive credit score.

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