What is a Good Credit Score? A Complete Guide to Credit Scores

Think about it: if you had an emergency and needed a loan, what would you do with bad credit? Where would you get your money from? Banks just simply wouldn’t let you take money without a good credit score.

It’s hard to come face to face with a bad credit score. It can be intimidating. But, the first step to fixing your credit score is accepting your debt. Just know, there is a way out!

So, take a deep breath. Get your free credit score report and get motivated to rebuild good credit. These eight crucial reasons to fix your credit score ASAP are sure to set you on the path to better credit.

1. More Business Opportunity

Wondering what to do with good credit? Invest in your business!

To start or expand a business, you need to increase your capital. While this may be possible through increased profits, it’s not always that easy. Increasing profits is usually a slow and steady process over time.

Sometimes, a loan is needed to help you take your business to the next level. One of the benefits of good credit is low-interest and high value loans. This means easy access to capital and more business opportunities for you!

2. Get a Loan with Ease

You might need a loan if you need money in a pinch. Situations like health emergencies or unexpected bills can force you into suboptimal financial conditions. With bad credit, it’s hard to obtain a loan that doesn’t charge sky-high interest rates. In fact, you may not even be able to secure a loan with bad credit.

This can make sticky situations stickier than they need to be. By repairing your credit, you can ensure you have a safety net in the case of an emergency.

3. Easier to Rent

Whenever you rent an apartment, you are subject to scrutiny about your reliability and payment history. Another one of the benefits of a high credit score is that property managers can trust that you will pay your rent on time.

If you are planning on renting an apartment any time soon, you need to look into repairing your credit score quickly and effectively.

4. You Can Buy a House

Buying a house is one of the hallmarks of the American Dream.

Being a homeowner comes with many benefits. Home equity allows you to create an extra credit line to support business ventures or investments. Additionally, owning a home and selling at the correct time can result in huge profits in the long run.

Mortgage loans are almost always a necessity for buying a home. To get a worthwhile interest rate and a loan worth enough to buy a home, you’ll need good credit.

5. Security Deposits Are a Breeze

Almost everyone knows you need a security deposit before renting a home or apartment. What some may not know is that utility companies and even cell phone service providers may also require a down payment.

If you have a high credit score, you might be able to significantly reduce or even avoid a down payment entirely. This is because providers can trust that you will pay your bills based off of good credit history.

6. Need a Car? You’ll Need a Good Credit Score.

Whether you are purchasing or leasing a car, you’re obtaining money from a lender to purchase the car outright. Then, you slowly pay the lender until the principal balance is paid off.

But, lenders require a good amount of interest to get a return from the money they lend out. Your credit score will determine the interest rate on the loan you’re using to buy the car.

You also may not even be able to purchase or lease a car with an extremely low credit score. If you’ll be needing a car soon, you need to start repairing your credit ASAP.

7. Better Interest Rates

Interest rates can vary widely depending on your credit score. Generally, the higher your credit score, the lower your interest rate will be.

By reducing the amount of interest you owe on the money you borrow, you can save anywhere between ten and almost twenty percent on your loan-based purchases.

In the long run, repairing your credit score can save thousands of dollars over a lifetime by reducing interest rates.

8. Higher Credit Limits

Although credit cards shouldn’t be used for all purchases, they can provide a good safety net in case of an emergency. High credit limits also increase your credit score by elevating your amount of available credit.

With a high credit score, you can get higher credit limits. This means a guaranteed safety net to give your peace of mind.

How to Get Good Credit: Work With a Credit Management Agency

A good credit score is essential for quality of life. It also opens up avenues for emergency money and business capital. You’ll also save money by lowering interest rates on loans and credit cards.

You can boost your credit score by lowering debt overall, developing more credit history, and keeping your credit card balances low. But, this can be difficult with a bad credit score in itself. Getting more credit history and increasing your credit availability just isn’t possible without good credit.

However, there are other factors that could be out of your control. False credit reporting is ubiquitous. It can be really difficult to have these removed without the help of an experienced credit management agency.

By working with a credit management agency, you can improve your credit score quickly. This can prepare you for unforeseen emergencies or expenses by allowing you access to money when you need it.

Looking to boost your credit score ASAP? We at Pinnacle Credit Management have some of the best case studies in the entire industry! Contact us today.