Whether it’s by accumulating credit card debt, missing a few debt payments, doing a short sale, or even filing for bankruptcy protection, you may be one of the many people whose credit has been hurt during the weak economy over the past few years. We all know that can make it harder to get a loan. But did you know that if you lost your job (another common casualty in this economy), your damaged credit report can make it harder to get a new one? Of course, nothing has the potential to further hurt your credit like lack of income. Talk about adding insult to injury!
Of course, the main benefit of a higher credit score is lower interest rates. The difference between a 3.5% and a 4.5% interest rate on a 30-year $250k mortgage is over $50k in interest! Other potential benefits of a high credit score include lower insurance premiums, better credit card terms, higher credit limits, and an easier time renting anything.