Why do credit scores actually matter?

Today, we’re going to talk about a few things really on why your credit score matters to you.

First and foremost, having a higher credit score, what does it do for you?

Better Interest Rates

If you would think that companies are fair when getting a car, getting credit cards, getting a house, getting an apartment, you’re wrong.

They base it off of your credit score. So why is it important to have a higher credit score?

Because you can get approved for a better apartment, a lower down payment, a better interest rate, talking about getting approved or not approved for things. Think about this for a second.

If you have a high credit score, you can pretty much get what you want.

Let me give you a quick scenario of what happens and why is it important to have credit cards and a high credit score.

The Story

We had a co-worker whose wife got a car accident. He rushed down there. She is pregnant. Two kids in the car and she is pregnant. He rushes down there to the scene. She’s shaking up. Kids are shaking up. And what do you think happens?

They can’t get out of there because they don’t have a car. So what they have to do?

They have to rent a car. Okay? So the rental car picks them up, but when they get there, he asked him, “What major credit card do you gonna use?” And he says, “My credit cards are maxed-out. I don’t have any room.” But here, I have got a lot of cash. “Sorry sir, we don’t take cash.” “Hold on, hold on. I got a debit card.” “We don’t take debit cards.”

So in a situation like that, his family frenetic, he has to go down to western union to figure out how to put money on to the credit card, the actual credit card, not a debit card, to be able to take care of his family.

Having Credit Is Your Lifeline

So, keeping your credit cards under 30%, that’s why we stress about that much. That’s why we stress about the importance of making sure that your payments were made on time, that your utilization is low. Because in a crisis, wouldn’t matter what the situation is, when you need a credit card, you should have one handy for emergency situations like that.

Imagine you’ve to leave your family to go take care of that while everybody is in a frenzy because of an accident. Think about how much more you will pay for a vehicle. This is unbelievable.

We’re talking about the difference of a $450 payment, okay, for a $35000 brand new vehicle, versus, now we’re talking about you’re in the 700s, versus, the same vehicle, $615 with a subprime 600 score.

So the difference between 450 and 650… excuse me, 450 versus 615 payment, just because you had a higher credit score. Is that fair? No, it’s not fair. But I was told once, “The fair comes once a year. It’s not here in town.”

So you may think that it’s not fair, but it’s the way America is. Get your credit score up so that when you’re in an emergency or you’re looking to get a vehicle or you’re looking to buy a house, you guys have the opportunity to do it without a blink of an eye.

***Call us NOW at (888) 810-2897 or visit mckenzieadams.net to learn how to Protect and Improve your credit RIGHT AWAY***