It’s no secret that credit plays a significant role in our lives. If you have bad credit or no credit, it may be difficult to rent an apartment or get approved for different loans and lines of credit. On the contrary, having a good credit history makes it easier for you to qualify for a mortgage, credit card, car loans or financing, and gives you the financial power to make larger purchases.
What does having a good credit history mean?
Having a good credit history means you have a history of making your regular bill payments on time. Whether it’s a credit card, car payment or a mortgage, paying your balances on time until the account is paid in full is a good way to build good credit.
What are the benefits of improving your credit?
Since credit and finance companies view good credit as a sign of trustworthiness, people who have good credit histories are considered to have high creditworthiness. This enables you to get approved for accounts with higher credit lines and loans with lower interest rates.
- Qualifying for Prime Auto Financing, Mortgages & Insurance Premiums
People with good credit history usually qualify for prime car loans or financing when buying a car, and prime mortgage rates when buying a home. Generally, the better your credit history, the lower interest you pay. Credit reports are one of the things car insurance companies review when determining your monthly premium.
- More Opportunities in Work & Personal Life
In some states, employers can check credit reports before making a final offer. Having a good credit history may signal that you are fiscally responsible. Similarly, couples embarking on major financial investments together such as weddings, homes, or children, have a better chance of getting the financing they need when they have good credit.
If you have bad credit or no credit and need to get approved for auto financing, a dealer enrolled in the Credit Acceptance program can help! And, since we report to the three major credit bureaus, you have an opportunity to improve your credit history with on-time car payments.
To get connected with an enrolled car dealership in your local area, fill out the form on our website and start your credit approval today!
- Publish Date