We’ve talked a lot about how your credit score is calculated (and how Brigit’s Credit Builder* can help build your credit), but not a lot of people know how that score actually impacts their day-to-day life. Here’s a list of everything that can be impacted by your credit score:
Buying a house
Your credit score will have a big impact on whether or not you qualify for a mortgage and buy a house. Most lenders are looking for a credit score above 500 to qualify, but if you want a lower interest rate, you’ll need a higher score.
Renting an apartment
In a competitive rental market, having a strong credit score is key. Many landlords and management companies will do a credit check as part of your application process and a higher score might help you stand out.
Getting better interest rates
Just like with a mortgage, a higher credit score often means a lower interest rate for credit cards, auto loans, and personal loans. Your income and debt history may also have an impact.
Loan refinancing
If you’re looking to refinance an existing loan, a better credit score will help you secure a lower interest rate.
Setting up utility accounts
Utility companies may run a credit check before opening your account. If you have a lower score, they may require a security deposit in order to set up your account.
Getting a new cell phone
If you’re not ready to buy a cell phone outright, your credit score will impact the plan your carrier puts together for you. A lower score might mean a higher down payment or your ability to lease a phone.
*Impact to score may vary. Some users’ scores may not improve. Results will depend on many factors, including on-time payment history, the status of non-Brigit accounts, and financial history. Results show that customers with a starting credit score of 600 or below were more likely to see positive score change results. A Brigit subscription is required. Credit Builder loans are not available in all states.
The Brigit Credit Builder is a service provided by Brigit and its bank partner, Coastal Community Bank, Member FDIC. The Brigit Credit Builder product is separate from the Brigit Instant Cash Advance service. Brigit Credit Builder installment loans are issued by Coastal Community Bank, Member FDIC, subject to approved underwriting practices.