Purchasing a home is the single largest purchase most consumers will ever make.
And the vast majority of those purchases are made on credit.
However, home buying isn’t the only time your credit matters.
When you want to rent an apartment, buy a car, and get braces for your children.
Or take advantage of a “no interest for 18 months” offer, and your credit score comes into play.
In some cases when you apply for insurance or a job, your credit will be checked.
For example, this is the story …
You’ve discovered your ideal home.
The neighborhood is ideal.
The schools are excellent.
The kitchen includes everything you desire.
You’ve got a good deal.
You’ve signed a mountain of paperwork.
You also open an escrow account.
Then your mortgage broker contacts you.
Remember that fantastic interest rate she gave you last week?
You are not eligible.
She claims that there are some issues with your FICO score.
Your interest rate will rise by nearly four percentage points.
The payment amount has increased from $2,150 to $2,820. That’s a 40% increase.
As that dream house slips away, your eyes well up with tears.
You lost your nonrefundable deposit check…
And it’s all because your credit score was deemed low by mortgage lenders.
The story of buying a house is real and it will happen over and over when you buy a car, borrow money for your business…
In conclusion, your credit history has a significant impact on your daily life, making expenses such as a home mortgage more or less expensive for you.
And renting a car without a credit card is nearly impossible.
