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Elevate Your Future with the Power of the Credit Score

Elevate Your Future with the Power of the Credit Score

5 Reasons to Improve Your Credit Score

The importance of your credit score cannot be understated but it is often overlooked when people are managing their money.

When it comes to your finances, your credit score impacts everything.

A good credit score will ensure you get better loan rates, generous credit card perks and other opportunities.

Here are some reasons to work on building yours.

1. A More Fulfilling Life

When you can get better rates and other financial options, it provides a certain level of freedom in your life.

While money might not buy you happiness, it can ensure a certain lifestyle, that all your needs are met and you have the freedom to live life your way.

Some of the things we do or want to own will require most of us to go into debt eg a house or car which means you will need to apply for a loan.

When you do that, they will check your credit score and credit history.

As such, if you want a more fulfilling life, freedom with your finances and to borrow money easily, check your credit score and work on improving it.

This will help with approval for a mortgage when going through a mortgage broker because a low credit score will make it much harder and the terms won’t be the best. 

2. More Agreeable Loan Terms

Further to terms, a good credit score will help with the interest rates you pay on a loan such as a mortgage or a large personal loan.

This is because it typically indicates to a lender that you are responsible for money and can be trusted to pay it back.

You can get better rates with a difference of up to 2% for each category of credit scoring.

When you think about how much most Australians are borrowing for a mortgage now, 2% is significant.

The lower your rate, the faster you can pay off your loan or invest your money or do whatever it is you want to do with your finances.

5 Reasons to Improve Your Credit Score

3. Insurance Discounts

Insurance is one of those things we don’t like to pay but is legally required for some things and strongly advisable for others.

For example, base-level car insurance is mandatory to register your car, while home contents insurance is not.

Younger people are twice as likely to be uninsured as those over 65.

Credit-based insurers refer to your credit score when determining your premiums.

Therefore, you can potentially get better rates on insurance if you have a good or excellent credit score. 

4. Enhanced Credit Card Perks

Credit cards are a primary reason people get into long-term debt because most people aren’t disciplined with their budget and overspend when they have a credit card.

Then they can’t pay it off in time and pay high interest, generally for things they didn’t need but only wanted.

However, when used wisely they can be a great way to get perks, save money and build your credit score.

To get a credit card with great perks, you also need to meet the income, age and other criteria, your credit score is only part of it.

Perks can include discounted holidays, free meals at restaurants and movie tickets, travel insurance and more.

Using credit cards to pay for shopping and bills helps build your score.

But track your spending and stick to a budget otherwise the perks are not worth the debt and drama.

5. Finding a Better Career

Finding a job you love can be a life goal and a hard one!

On average, you can attend between 10 and 20 interviews before landing a job.

This is because they might have specific criteria you need to meet.

Not many people are aware, but some employers run credit checks.

These include the armed forces, financial jobs and law enforcement.

This is because you are typically in a position of public trust.

So, your credit score could be keeping you from a dream career!

Summary

Life can be more fulfilling with a secure home, a safe car and comfy surroundings.

When your basic needs are met, it is much easier to do the other things you want to do in life.

A great credit score can help you attain these so it’s worth taking the time to learn about it, make changes and improve yours.

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