People with no or little credit history can still get loans and credit cards, but their choices are restricted. More freedom and opportunities will open up to you as your credit score rises, Ward says.
Some landlords, utilities, and insurance companies will not do business with you if they discover any red flags on your credit report.
A person with a high credit score is seen as more reliable and trustworthy. VantageScore Solutions spokesperson Jeff Richardson warns that if your credit score is low, you may be forced to settle for unfavorable loan terms and interest rates or even turn to predatory lenders.
Richardson warns against ever needing such a lender of last resort. "You prefer an authoritative role. It is preferable for lenders to sell to you rather than the other way around."
Lenders are in the business of reducing their risk, so their primary concern when considering your application for credit will be your ability to repay the loan.
This is what Ward has to say about it: "It's significant because it represents a potential loss on their part in terms of loaning money. They need assurances that they will receive a return on their investment. They are not willing to take any unnecessary risks as a company."
Some landlords, utilities, and insurance companies will not do business with you if they discover any red flags on your credit report.
A person with a high credit score is seen as more reliable and trustworthy. VantageScore Solutions spokesperson Jeff Richardson warns that if your credit score is low, you may be forced to settle for unfavorable loan terms and interest rates or even turn to predatory lenders.
Richardson warns against ever needing such a lender of last resort. "You prefer an authoritative role. It is preferable for lenders to sell to you rather than the other way around."
Lenders are in the business of reducing their risk, so their primary concern when considering your application for credit will be your ability to repay the loan.
This is what Ward has to say about it: "It's significant because it represents a potential loss on their part in terms of loaning money. They need assurances that they will receive a return on their investment. They are not willing to take any unnecessary risks as a company."
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