SEO Micro Blog: Credit Score
Credit can be confusing. Especially when you are unfamiliar with its uses and have never had access to the right information, have received conflicting advice, or are simply new to the financial system.
It is clear that a credit score allows us to borrow money for goods or services now and pay that money back later, but it can be unclear what a lender looks for to determine whether or not we will pay the money back on time. Also, the real cost of borrowing may not always be clear. Knowing what a credit score represents is a good way to understand why for some products,lenders use credit scores as a measure to gauge whether we are a safe bet when we apply for a loan.
A credit score is a three-digit number between 350 and 800. It is calculated using different criteria determined from your payment history, the amount of debt you have, and the length of your credit history.
Of course, if you have never used credit, you won’t have a credit score. Still, there is always a chance to build one. Maintaining your financial health depends on having a good credit score —one of the reasons is access to better interest rates. You pay interest whenever you borrow money to make a purchase, whether a home, a car or to cover an emergency. You will typically be offered a lower interest rate when you have a higher credit score, which means you spend less over time for the loan. Our Credit Builder Loan can help you if you need to build or increase your credit score, with or without a credit history. Apply for a personal loan with us today as an existing customer, and you have the chance to pay less for your financial goals!
Another reason having a good credit score is essential has to do with having access to an apartment or home. Your credit score may determine whether you can afford to buy or rent the home that you want. In addition, when you have a higher credit score, you are more likely to access an affordable mortgage. Get started on that dream home when you apply for a personal loan with us, our Credit Builder Loan.
Having a good score can also afford you better access to insurance. Given that we need insurance for all sorts of things, including cars, homes, and even cell phones, it’s beneficial to have a good credit score because insurance companies will use those scores to approve applications and determine monthly premiums: the higher the credit score, the lower the monthly premium, which means that when you have a higher credit score, you can save money. Insurance providers check credit scores annually to determine rates for the following year. We can help you keep your credit score high and premiums low when you apply for a personal loan with us.
If you need more reasons to apply for a personal loan or have questions about building credit, contact our partners at Ariva Inc. and GreenPath[MS1] for free financial counseling sessions. They can pinpoint the products that best suit your needs. Learn more about credit and other financial health topics from our partners at GreenPath Financial Wellness.
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