Work on Your Credit Story- It's Yours to Tell!

Work on Your Credit Story- It's Yours to Tell!

Close up view of hands inputting numbers on calculator and writing with the other hand.

WORK ON YOUR CREDIT STORY - IT'S YOURS TO TELL!

Your credit score could matter most to you when you really need it …. Don’t ignore how this review can influence lenders/future creditors.

When you are applying for a credit card, auto financing or a mortgage the “impression” your bureau leaves will either give you access to more credit, and if so, how much you can qualify for. But it also determines the interest rate you will receive.

If you have fair credit, or bad credit your interest rates are going to be higher than someone that shows a higher credit score. Even a 1-2% difference on financing rates could cost you much more in interest over the course of a financing term.

THE HIGHER YOUR CREDIT SCORE …. THE LOWER YOUR INTEREST RATES COULD BE!

If you want to know the cost of borrowing (credit card balance, auto financing term, mortgage) use an online calculator. Yes, this might dissuade you from getting more credit, but the ONLY way to improve upon future financing is getting new credit and treating it with respect so your score will improve.

BUT I DON'T NEED ANY CREDIT!

Well, unfortunately the world runs on credit - when you decide to get a new cell phone, or getting a new apartment, your credit is checked. Some rental companies not only ask for, and check in with references, they will request access to your credit report.

Before agreeing to rent to you, this might help the landlord determine if you can afford the rent and will make payments on time. Sooooo, if you think your credit score and payment history (paying on time) can affect where you might live, you would be correct!

Whether you are shopping around for better rates, or looking to buy a new car, or get the latest upgrade on your iPhone, it's so valuable to monitor and maintain or IMPROVE upon the credit you have. Some of your biggest life decisions, as well as your needed day-by-day spending habits can be impacted on the story you create - You have the ability to impact lenders decisions, now and in the future!

Anne Kolodynski - Personal Finance Consultant
RightRide / Auto Canada

Categories: The Right Advice, Credit, Credit Approval

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