Your credit score can have a tremendous impact on your quality of life. It is more than just a 3-digit number. It is an indicator of how creditworthy you are.
Your credit score is calculated using algorithms that work out how well or how poorly you pay your bills and how much debt you carry.
Every single time you take out a loan, open a line of credit, or open an account with a utility service such as electric or internet, the information about the money you owe and how you went about paying it back is reported to credit bureaus.
Simply put, your credit score is a single number that reveals how a person manages their money. As such,you must understand how it can benefit every financial aspect of your life.
Click here for mycare info benefits you can expect from having a positive credit score.
1. Get Low-Interest Rates on Your Loans
The Covid-19 pandemic has caused interest rates to plummet to record lows. But if you want to qualify for these low interest rates, you’re going to need a good credit score. Some of the loans you’re going to require with good credit include home mortgages, personal loans, and student loans.
Americans also rely on credit (borrowed money) every day to pay for items and services. Having a good credit score means you’ll have a much more flexible borrowing limit on your credit card.
2. You Can Rent Property With Ease
Before a landlord gives you a lease agreement to sign, they’re going to check your credit report. Since your credit score indicates how likely you are to pay your bills, the better your credit score is, the more likely you will have your rental application accepted.
The minimum credit score you need to rent an apartment ranges between 620 and 650, which is largely considered as fair credit.
3. Enjoy the Best Rates on Insurance Premiums
A good credit score can help you save money by allowing you access to low auto and homeowners insurance premium rates. Most states allow credit-based insurance scoring where insurance companies assess the risk of policyholders based on how well they manage their money.
For instance, a good credit score means you get to pay less for auto insurance than if you would have paid for the same car with a poor credit score.
Take Advantage of MyCare Plan
Imagine playing quarterback with a strained arm muscle. You can initiate some nice plays here and there, but it will be very difficult to pull through the whole game. The same goes for bad credit. Sure, you can survive, but it’s not easy and will cost you a lot extra.
If you want to learn more about how you can build your credit and plan for the future, consider registering for the MyCare Plan from Financial Education Services (FES). MyCare is a cohesive plan that includes information regarding every financial aspect of your life.