You need a credit score to operate financially, much less to get ahead. 20% of Americans have no credit score at all. And 46% of Americans living in low-income neighborhoods have no score.
Credit affects whether you’ll get a mortgage, and, if you do qualify, what interest rate you’ll get.
Credit affects whether you can rent a quality apartment because most landlords check credit.
Credit affects the rates and terms you’ll get in the market place, meaning real savings come with good/great credit.
Unfortunately, with no score or a poor score (that is, a score below 600), you’ll get:
• Car loans over 25%
• Car insurance premiums that are doubled
• Sub-prime credit cards with high fees and rates
• A hefty deposit to turn on your utilities
In an emergency, if you don’t have a credit card with room to borrow, you’ll have to:
• Replace big ticket items, like a refrigerator or mattress, from Rent-to Own Stores that quadruple market prices
•Go to payday and auto title lenders for cash, which means paying interest rates at 400-1000%.