Your credit score is crucial in shaping your financial opportunities. If you are planning to buy a home, finance a car, or apply for a loan, your credit score is the key to better terms and saving money over time. Here’s why your credit score matters so much.

You have Access to Better Loan Options

Lenders assess your credit score to see how likely you are to repay your loan. A higher score means you can be reliable, and it shows you can be a lower-risk borrower. You can then qualify for loans with lower interest rates, lower fees, and better terms.

Lower Interest Rates

When you are viewed as a trustworthy borrower, you will be offered more competitive rates. A lower interest rate means you will pay less interest over the lifetime of your loan, which means more money in your pocket.

Easier Approval for Housing and Utilities

Landlords and utility companies often check your credit score as part of their approval process. Higher scores help you secure the house or apartment you desire and will sometimes help in lowering extra deposits for utilities.

Better Credit Card Perks

A higher credit score can offer you credit cards with better rewards, higher credit limits, and lower fees. These benefits can help with managing your expenses and even earning better rewards.

Emergency Financial Flexibility

Life can be unpredictable, and you may need to borrow money unexpectedly. Your higher credit score can help give you access to the funds you need and with better terms and conditions.

How Can You Build and Maintain a Strong Credit Score

• Pay your bills on time: Late payments can hurt your credit score
• Aim to use less than 30% of your available credit: Work to not max out your credit cards
• Check your credit report regularly: Make sure your score is accurate and quickly address any discrepancies or fraud you encounter
• Limit new credit applications: New credit applications can impact your score.

Your credit score reflects your financial habits. Understanding the importance of your score, and taking the necessary steps to improve it, will allow you to have greater financial success.

If you have questions about how your credit score and it can impact your financial goals, reach out to us at information@intandemcu.com or call us at 888.336.3490 to talk to a financial counselor today!