News & Advice

If you’ve ever wished your life were easier, there’s a way to make it happen. 

It takes time and discipline, but if you increase your credit score, numerous benefits become available to you to make your daily life easier. 

Your credit score is determined using information like your payment history, outstanding balances, types of credit accounts such as mortgages or car loans, length of your credit history, and applications for new credit accounts. 

If you need some motivation to increase your credit score, consider these benefits. 

GET LOWER INTEREST RATES ON LOANS AND CREDIT CARDS  

A standard credit score range is between 300 and 850, and a credit score of 740 or higher is typically considered to be very good. Since your credit score indicates to financial institutions how likely you are to repay a loan and make payments on time, it’s important to establish a strong credit score. 

A higher credit score shows lenders that you’re able to meet your financial obligations, so they view you as less of a risk and are therefore willing to give you lower rates. A high credit score increases your chances of getting low interest rates on loans and credit cards. That means having a high credit score can save you money on credit cards, personal loans, auto loans and mortgage loans.

BECOME MORE LIKELY TO GET RENTAL APPROVAL 

Since you being financially responsible is in a landlord's best interest — they want to know they’ll receive your rent on time and consistently — most will check your credit as part of your rental application.

If you have a high credit score, they’ll view you as financially trustworthy and be more likely to allow you to rent an apartment or townhome.

AVOID SECURITY DEPOSITS 

When it comes to looking for a place to rent, security deposits are the norm. Paying a security deposit shows your landlord that you’re serious about taking care of your new home or apartment. If you have a high credit score, a landlord may ask you for a lower security deposit fee — or none at all — since they will consider you to be a reliable incoming tenant. 

GAIN EMPLOYMENT EASIER 

Some employers will make judgments about you based in part on your financial history and financial health. Potential employers don’t receive your credit score, but they can still check on your finances by looking at a modified version of your credit report, which details your credit history.

This won’t happen without you knowing. You must give written consent in order for reports to be given to employers, as detailed in the Fair Credit Reporting Act. Your credit information can’t be disclosed to a potential employer without your written consent. 

Some states have restrictions on if employers can use credit information to make decisions about employment. Indiana is not one of those states. To find out more about the specifics of the laws where you live, contact your state’s labor department.

Potential employers may consider your financial health to be indicative of character traits — they may view you as responsible, smart, and a good decision-maker due to your financial habits, so having good credit will be helpful to you in the job search. 

BECOME A HOMEOWNER EASIER 

To qualify for a mortgage, all eyes will be on your credit score. A high credit score makes home ownership easier because it will help you qualify for a loan, open you to more loan options, and will get you better interest rates. Having a lower interest rate can save you thousands of dollars over the life of your loan. 

GET BETTER AUTO INSURANCE RATES 

People with bad credit pay an average of $1,301 more for auto insurance compared to people with excellent credit scores. 

When it comes to auto insurance, a Federal Trade Commission report found that people with low credit scores are more likely to file claims. As a result, people with low credit are perceived to be higher risk, and then pay increased auto insurance rates. 

WE CAN HELP   

When you bank with us at INOVA Federal, we’re always within reach to help you accomplish your financial goals. We want to help you establish, improve or maintain your credit score. 

Your credit ability is your credibility! Please contact Samuel Kamwenji at (574) 322-6695 or via email at [email protected] and we'll help you get on the path to financial empowerment.