A bad credit score cause a huge impact to your personal financial live, below just name a few of those setback:
- Apartment rent – Leasing officer will scan your credit score and if they can spot some red flags, your application is at the edge of rejection or you may end up with paying a high, non-refundable secure deposit to be able to apply for this rent.
- High loan interest – When it come to big loan for home or auto, credit score is the number one and the most important factor for lenders to look at and make the informed decision whether the borrower (you) is qualified or not. Even you are showing a good income from a steady job, you still not able to apply for the loan or take it with a way more high of interest rate. The lender consider this is a high risk deal and charge you more given the fact they have seen more than one borrower went bankruptcy/default with such this low credit score.
- Land a job – Same as with leasing officer, the company HR scan your credit score and they can stop mailing you the offer if the number they see is lower than standard. They see an inability to manage and balance financial from your personal life and afraid that can impact to your profession.
Excellent/very good credit score are ranked from 700 to 850. Good credit score: 680 to 699 (Average American score is 682) Average/OK credit score: 620 to 679. Low credit score: 580 to 619
Lets go build a high credit score so none of those issue can trouble you anymore.