Good credit takes a long time to build, and only a few mistakes to ruin. Bad credit can get you turned down for a car loan or a home loan. It also means you’ll pay higher interest any time you need to borrow money, and it can impact the way businesses and employers make decisions about you. If you’ve made mistakes in the past, WestWind Homes is here to help. Our Home Buyer’s Club and credit repair events help Texans correct errors, pay off debt and improve their credit score faster than most dream possible.
How a Bad Credit Score Affects Your Life
Texans turn to us for help with credit repair because a low credit score can keep them from reaching their goals. Bad credit can cost you in a number of ways.
- Low credit means high-interest rates – Your credit score tells lenders how likely you are to pay (or not pay) money you borrow. Some lenders won’t provide financing at all. The ones that do will charge you more because they see you as risky.
- Employers might turn you down for a job – You could have all the qualifications for a finance or management position, but still get turned down because a prospective employer runs your credit. They worry if you have had problems paying bills in the past, you might mismanage their funds, miss deadlines or not meet responsibilities.
- Lenders could deny your credit application altogether – There’s not much worse than falling in love with a house or a vehicle and finding out you can’t qualify for financing. If your credit is too low, lenders won’t approve a loan at any interest rate. It becomes necessary to fix bad credit in order to get a loan.
- Insurance companies charge you higher premiums – Insurers link lower credit scores with higher claims. Even if you haven’t filed any claims, they could charge you more if they find you have a low credit score.
- You could have problems getting cell phone service – Major providers run your credit before they give you a phone and a contract. Bad credit could mean you only qualify for a prepaid cell phone that costs more than regular service, or that you have to pay more upfront.
- Landlords might rent to someone else – Landlords often run your credit when they evaluate your rental application. If you default on other bills, they think you might not pay your rent on time either. If they have two otherwise equal applicants and the other person’s credit is better than yours, they could pick them over you.