Your credit score determines your access to premium credit cards, better loan products, and more favorable interest rates.
However, if your credit score is bad — between 300 and 579 on FICO or 300 to 600 on VantageScore — you’ll have a difficult time in several ways. Getting the best credit in Salem is about more than just luck, and you can only do that if you understand just how much your credit score impacts your life.
What Happens If You Have Bad Credit
A bad credit score gives you some of these disadvantages:
1. You Become A Big Risk To lenders.
Banks have strict standards for determining who qualifies for lending. If you have a bad credit score, you might not qualify for traditional loans or credit cards.
2. You Pay More For Your Loan.
Having a good credit score will allow you to bank with more reputable institutions, as well as get the best interest rates on loans.
3. You Pay Higher Insurance Premiums.
If your credit score drops below 600, your policy will not be canceled. However, a poor credit score could prevent you from getting the lowest rate.
4. You Might Miss Out On Career Opportunities.
A good credit history sets you up for better career opportunities. Most states allow employers to pull consumer credit reports when making hiring decisions, and even when deciding who to promote and reassign. This is particularly true if the position includes many financial responsibilities.
Selling Your Salem Home Can Improve Your Credit Score
Selling your house is an option if you require a higher credit score for whatever reason you may have.
By selling your house, you can pay your mortgage in full. When you make a full payment, your credit score can see a boost.
If you sell your home and get a mortgage for a new home, you will continue to benefit from having a mortgage in your credit mix. Over time, your credit scores can increase even more if you remain on-time with your monthly payments.
When you sell your home for a profit, you may also decide to pay off any existing credit card or loan debt. Getting rid of this kind of revolving debt can boost your credit scores, especially if you’re currently using a high percentage of your available credit.
How To Boost Your Credit Score Through Home Sale
There are several ways to sell your house. You can go through the traditional process of home sale—that is, you hire an agent, put up your property for listing, and negotiate with buyers. However, this might not be an ideal option if you’d rather not incur additional costs, such as repairs, remodeling, commissions, and closing costs.
Another easier and quicker way to sell your home is by selling through a cash home buyer. These types of buyers assess your home and offer you a cash value on the spot based on the as-is condition of the property. This option is best if you need to sell your home quickly and you don’t want to deal with additional costs.
When thinking about selling your home, keep in mind that your credit doesn’t just affect your ability to qualify for loans and credit cards. Your credit score can also affect your homeowners insurance premium, your auto insurance premium, and whether you are considered for a new job.
If you see that your credit score is in danger, selling your property is one of your options. Just make sure you’re doing other things to keep your credit score high and show to lenders that you’re on top of your finances.
Let Us Help Improve Your Credit!
Planning to sell your home to improve your credit? We can help!
Quality Homes Reimagined, LLC is a trusted cash home buyer in Salem, Oregon. Skip the realtors, and sell your house to us quickly, for a fair price, and without the usual closing costs. Cutting out the middleman prevents delays and significant closing costs normally associated with selling through an agent.
Best of all, we buy your house as is. No need to worry about cleaning, open houses, and repairs.
Get in touch with Quality Homes Reimagined and sell your home to us today. Call us at (503) 610-8828.