subject: Just How Important Your Credit Score Is [print this page] Many consumers do not understand how important a credit score is. However, at CreditNowUSA, we know exactly how important your credit score is, and we know how to help you improve it. We exist to help our clients with most of their financial needs. We help people to get loans when they need them, but more importantly, we help our clients to track and improve their credit scores.
Every time a consumer borrows money, it is reported to the credit bureaus, and every time a consumer makes payment on their loan, it is also reported to the credit bureaus. This information and all of the other details on an individuals credit report is used to create their credit score.
This credit score often dictates whether or not a lender will give you a loan. Many consumers undervalue this fact because they know that there are lenders that focus on so-called high risk borrowers. However, high risk loans often carry high interest rates.
If you have to accept high interest rates in order to get a loan, you may end up paying a lot more for your loan. For instance, if you borrow $5,000 to buy a used car and you get a low interest rate of 6 percent, your monthly payments will be approximately $96. Those payments are on a 5 year loan. However, if you borrow the same amount of money but with a 14 percent interest rate, you monthly payments would be approximately $116. This is only an extra $20 per month, but over the course of five years this equates to an extra $1,200 in payments.
Essentially, this is why your credit score is so important. A low credit score means that you pay higher interest, and higher interest means higher payments. Over the course of a lifetime where you may take out several different loans, you may end up paying thousands if not hundreds of thousands of dollars just in extra interest and fees.
Luckily, there are ways to improve your credit score, and at CreditNowUSA, we can help you to do that.
For more information, go to Credit Score at http://www.creditnowusa.com/Credit-Score
