Get to know your credit.

A good credit score can help you get approved for loans and qualify for low interest rates.

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How to fix your credit?

Bad credit can ruin your financial life. Luckily, repairing your credit is easy and you can certainly do it yourself. See how.

How to build your credit?

Having no credit history is just as bad as having a poor credit. Learn how to build your credit from scratch.

What is a good credit score range?

Is your credit good or bad? Find out how lenders see your creditworthiness and how you compare to others.

How to check your 3 credit scores?

Your scores across bureaus can vary. Ordering all three credit scores before making a large purchase gives you a clear and accurate picture of your credit situation.

What are the best credit repair companies?

In an industry full of false promises there are actually only a few reputable credit repair companies. Should you use a credit repair service? Find out here.

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Why your credit matters?

Your credit score is used as an indicator of ‘creditworthiness’ by a variety of financial agencies and other entities. This means that your credit has a direct impact on many aspects of your life. Let’s take a look at some of those aspects now:

Loan approval

Even if this is your first time doing credit research, you probably know that your credit scores are used by banks and other lending agencies to make a judgement about whether or not you will pay back your loans. This includes mortgages, car loans, personal loans, and pretty much any other loan. You need a good score to borrow large sums from reputable lenders. For those with poor credit, options such as payday, pawn shop, or “instant approval” loans are often the only option. This translates to more interest fees over time.

Interest Rates

High credit scores generally equate to lower interest rates. Lenders save their best loans for those who are sure to pay them back. In this way, your score determines how much you pay over the full term of pretty much any loan. If you have to depend on a lessor creditor (ie. “no credit check required”), you can be sure that you will pay much more. On the other hand, great credit results in lenders competing for your business.

Insurance

Home and auto insurance companies check your credit to help determine the value of your premiums and other fees. If a company deems that you are unlikely to make payments consistently for the duration of your plan, your fees and premiums will be higher. This may seem counterintuitive since this will obviously make the payments harder to make. But for them, charging more up front or on a monthly basis results in more of your money in their pockets if you do stop making payments prematurely.

Occupation

Depending on your career path, employers may look into your credit scores as a measure of how responsible you might be. Accountants, loan originators, military personnel, those in government positions, and even parking booth operators may be subject to credit checks. If you handle money, those above you in the management ladder need to be able to trust that you can make responsible decisions with it.

Beyond these things, there are many other instances where you credit scores are likely to play a major factor. Cell phone service, furniture rentals, apartment leases, and a variety of other situations might require you to have a certain level of credit in order to get approved.

Your credit toolkit

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Cafe Credit started back in 2014 with a mission to provide the most accurate and actionable content about credit scores and credit reports – so you can save more money and live a better life. Today we are one of the most trusted websites in the credit industry. You can find us on social media: Facebook, Twitter, Google + and Flickr. Please visit our about page for more details and contact information.