Why Is Credit So Important?

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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%.

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