It’s funny to think that a three-digit number can determine your ability to own a house, buy a car, or start a business; but for the average American, that’s just how it is. We at Sherman Law Firm, P.C. have seen a number of bankruptcy cases attributed to the fact that people with bad credit can only access unfavorable (and later on, unpayable) loans.
Your credit score is the most important number to the financial half of your life, and there are many compelling reasons why you want to keep it high.
To start, your credit score is a direct measure of how much our how little lenders can trust you. When considering the principal amount of a loan, banks and other lending institutions refer to those three numbers. This is because your score takes into account things like the number of late payments you’ve made, how frequently you enter into debt, and how many debts you already have at a given point in time.
Banks and other lenders only have a limited supply of cash, so despite the fact that the law tends to favor them in times of bankruptcy, it’s still in their best interest to make sure that all loan terms reflect the riskiness of their borrowers.
Your credit score also affects transactions like leasing an apartment or signing up for a mobile plan.
Now, the most important reason why everyone should take an active interest in maintaining a good credit score is because these scores don’t just get better over time.
Like a snowball rolling down a hill, good credit can lead to better credit; and bad credit can worsen with greater ease. You need to keep a healthy credit score because accepting anything less is a quick ticket to financial disadvantage.
If your credit score is in trouble, don’t worry. There are financial experts out there who can help you make those numbers climb. If all else fails, you can always call us at Sherman Law Firm, P.C. for help getting through the worst of your financial troubles and the legal problems they might bring.