We built SpeedCents to help consumers save money on their car payments. We saw a problem and developed technology to fix it. SpeedCents is already saving people $25, $50 and even $100 per month on car payments.
A byproduct of us helping consumers is we see many people turned down to refinance due to poor credit. Not making payments on time or carrying high balances can drive their credit scores down significantly.
We know bad credit can hurt you in so many areas. It’s not only the fact that you are paying high interest on your car loan but it also can affect getting a job, your insurance, getting a home or apartment or many other areas.
Top areas that a poor credit score can affect you:
Auto Loans and Home Loans
Lenders rely heavily on credit scores to determine your ability to pay in a timely manner. Having bad credit scores cause you to pay higher interest rates for your home or car which typically is the two largest purchases consumers make. Improving your credit score on these large purchases could save you thousands to 10’s of thousands of dollars over the life of your loan.
Insurance companies use credit score when determining your premiums. (Unless you live in Massachusetts, Hawaii, or California, where the practice has been banned.) Now you have a double-whammy: you are paying higher interest rates on that nice new car you bought and your insurance company is charging you a higher premium.
- Renting an apartment or home Most, if not all landlords, run your credit before renting to you. A bad credit score will lower your chances of renting a place to live. If you have bad credit you can often expect to pay a larger deposit compared to someone with better credit.
- Utilities Congratulations you got that new home or apartment. Guess who else checks your credit scores. The utility companies. If you have bad credit you could have a large security deposit to open a new account with them.
- Employment Employers check your credit report. They are looking items that could affect how well you can perform for them. You could be turned down for a job due to negative items on your credit report and it’s even more critical for people in the financial industry.
I hope this begins to help you see the trend. Credit scores are used everywhere. A bad credit score can have a spiralling effect on your life. We started out trying to help consumers save interest by refinancing cars. We now recognize that further educating consumers on credit improvement is going to be critical in our mission to help our customers reduce payments and more importantly high interest.
NOTE: The information contained herein is for educational purposes only and is not legal advice. You should seek advice from a legal professional regarding your particular situation.