Whether you’re looking at financing a heating system or buying a new car, your credit matters. Bad credit can result in you getting refused a loan or mortgage for a home, car, and many other things that many consumers strive for. A heating system, unlike a car, is a necessity in most homes, and while you may not get refused outright, your payments will likely be much higher than for someone with good credit. Finance companies may not look at your credit score, per se, but they may look at your payment history with utility companies, your salary, etc. Many people believe that your credit score matters too much – after all, it’s just a number! It may seem extremely unfair, but the fact is, your credit history and credit score are what financial lenders rely on to gauge your creditworthiness. If you need help increasing your score, here are some things you can do right now:
- Get a copy of your report and score: There are three major credit reporting agencies – Experian, Equifax and TransUnion. You’ll want a report from all three. Your credit report will be free, but you may have to pay a small fee for your actual credit score. Read the report carefully and make note of any discrepancies.
- Make your payments on time: This includes all of your loans, credit cards and of course, your mortgage.
- Don’t close any accounts: When your credit is checked, the finance company wants to see your history; if you close accounts or get rid of your credit cards, it will look as though you don’t have any credit, which can be worse than no credit at all. Keep them open, with zero balances.
- Don’t apply for major loans or credit cards if you’re trying to get financing for something else. Every time your credit is checked it slightly lowers your credit score.
- Monitor your credit: Every few months you should order a new credit history report to see if there are any changes, positive or negative.
Having good credit will serve you well in life and save you money on interest rates, monthly payments, etc. If you’re financing a heating system for you and your family, you’ll want to ensure you get the best rates possible, with low monthly payments that fit your budget. The good news is that you can raise your credit score fairly quickly by being diligent and responsible with your payments.
December 19, 2017