of Americans have poor credit.
If you’re among them, then we know that bad credit can feel challenging problem to fix. Yes, you want to pay off your debts, make payments on time, and try to keep your balances as low as possible.
But sometimes, you wonder if all the financial sacrifices needed to make this happen are worth it.
Why do you need good credit?
In this post, we’ll help you understand a few of the many benefits of a good credit score. We’ll also let you know where you can go to find better financing options and the right loans to help make ends meet right now.
1. Increased Chances for Loan Approval
First, know that if your credit score is lower than 600, your chances of getting approved for a loan — especially a loan for your business — significantly decrease.
This makes it even harder to avoid getting trapped in a cycle of debt, because you’re unable to get the money you need to get you back on your feet.
Perhaps one of the most important benefits of a high credit score is that it proves to lenders you’re capable of paying back the loans because you have a history of doing so.
A good credit score will also help you to get better loan interest rates — and may even mean you’re allowed to borrow larger sums of money.
2. You’re More Likely to Get a Credit Card
Especially if you’re already in lots of credit card debt and have a poor credit score, you likely won’t get approved for another line of credit for your business.
But when you improve your credit, you’ll get lower credit card interest rates, higher credit limits, and faster approval times.
3. Avoid Security Deposits
One of the less well-known benefits of a good credit score is being able to avoid having to pay security deposits on company cell phones, utilities, and sometimes, even on an apartment, office space, and home rentals.
If companies know you don’t have a strong history of making payments on time, they’ll protect themselves with a costly security deposit that could even prevent you from being able to afford a phone or certain utilities.
When you right your credits’ ship, you’ll avoid these costly deposits.
4. More Affordable Car Insurance
Nearly 18 million Americans say they can’t afford car insurance.
Most times, this is because poor credit scores mean that they are charged astronomical car insurance rates. Insurance companies are afraid that those with bad credit will make more frequent claims.
One of the benefits of having good credit is better car insurance rates and more affordable monthly payments.
Don’t Ignore the Benefits of a Good Credit Score
Now that you know the benefits of a good credit score, it’s time to start to refine your budget, take out another job, or even rethink your current lifestyle so you can pay down your debt and boost your credit score ASAP.
Plus, you’ll also have a much better overall negotiating power with lenders and other financial institutions with a high credit score.
Looking for more tips to improve your credit score? Want to apply for a loan to give yours a boost or get your business the funding it needs?
Dealstruck can help.
Check out our available business loans and contact us to start your application.