Arizona Tribune - Oportun: How Credit Impacts One's Ability to Attain Financial Services

1. Helps Borrowers Access More Favorable Rates on Personal Loans

Personal loans are versatile financial tools that let people borrow large amounts of money and repay it in fixed, predictable monthly payments. Borrowers can use these loans for many types of expenses, including:

• Large purchases

• Debt consolidation

• Home renovations

• Car repairs

• Medical bills

Borrowers with higher credit scores can lock in lower rates on their personal loans. This can help them fit their borrowing into their budget more easily. Luckily, some lenders also offer loans for borrowers with low or no credit, so those without an established credit history can still get approved.

2. Helps Cardholders Qualify for Great Credit Cards

Credit cards let cardholders borrow flexibly and repay at their leisure. They can delay repayment for up to two months, thanks to the monthly billing and month-long grace period.Plus, many credit cards offer rewards for the cardholder's spending and numerous other perks. However, the best cards - those with the highest rewards rates and other features - generally require higher credit scores.So, borrowers who work hard to raise their credit can qualify for cards that let them earn more rewards for their shopping, travel, and more.

3. Helps Renters and Homebuyers Obtain Housing

Good credit can help both renters and buyers.Strong credit scores help homebuyers get larger mortgage loans and lower interest rates. This gains them access to a wider variety of properties, making it easier to find their dream home.Renters can also benefit from a great credit report and score. However, landlords often look closer at a renter's payment history than their overall credit score. Having a perfect record of on-time payments can make it easier to qualify for an apartment. Landlords may also demand lower security from renters with better scores.

4. Helps Policyholders Save on Insurance Premiums

The Fair Credit Reporting Act allows insurance companies to include a potential policyholder's credit score in their underwriting process. Some states restrict insurance companies from using credit scores for certain pieces of the process. Still, many insurers generally weigh an applicant's credit score alongside other factors when determining whether to approve an applicant and when calculating premiums.As a result, applicants with high credit scores may have more insurance coverage options and qualify for favorable premiums on their coverage.

Strong Credit Offers Plenty of Financial Benefits

The most obvious benefit of a great credit score and history is that people can qualify for personal loans and credit cards with better rates and features. This means they can save on interest and earn more for their shopping. But homebuyers and renters alike can benefit from a strong credit score, too. Homebuyers can get larger mortgages and lower rates, while renters can enjoy lower security deposits and easier access to more apartments. Good credit can even help people save on their insurance premiums.

In conclusion, working to improve a credit score is one of the best ways to prepare for financial success. As one's score rises, they can enjoy these benefits and much more.

CONTACT:

Sonakshi Murze
Manager
[email protected]

SOURCE: Oportun

View the original press release on ACCESS Newswire

O.Brown--AT