Why Good Credit Scores Are Essential And How They Impact Your Daily Life - mycreditdoc.com

Why Good Credit Scores Are Essential And How They Impact Your Daily Life

Credit Repair Tips help create a happy lifeI received an email yesterday from a reader asking how important credit scores are in this recession we are going through.

Hopefully this Credit Blog has done a good job of giving you credit repair techniques that increase your credit scores but I realized showing you how a low credit score can cost you thousands of dollars is also important.

Many people don’t realize how many items are controlled and dictated by their credit score.  Here’s a few:

Your Home

  • Getting your dream home with all of the extras you want.
  • The paperwork process for a mortgage can be much easier with good credit scores. You’ll have less paperwork with a higher credit score and  your drastically increase your lendability!
  • That increased lendability allows you to also shop around to different lenders and they will COMPETE for your loan! – It’s the total opposite of how it is with bad credit.
  • With good credit scores, you don’t have to put as much money down.  Many mortgage programs will allow you to only put 3% down compared to 20% for other programs.  The 17% difference on a $200,000 home is $34,000 you would have to come up with to put down on the home!


  • Renting houses have become much more popular in the last few years – you get the whole home just as if you owned, but you only have to pay a monthly rent.
  • These are a great “in-between”, but you have to have good credit to normally rent one.
  • Another thing I’ve seen happen numerous times is a different applicant may get the rental home instead of you because of their credit standing. That’s one of the worst ways to get rejected.
  • Renting an apartment/house/condo – Your deposit and monthly amount can get “jacked up” if your credit is lower than par.


  • Getting a car.  Auto dealerships are notorious for denying people for loans or charging them an obnoxious rate.
  • With good credit, you get the car you WANT, NOT the one the dealership says you are approved for.
  • Going into the car dealership is intimidating and aggravating with damaged credit.  With good credit, you have the chip on your shoulder and the control is in your hands.   It feels much better to visit the car dealership with good credit.


  • Getting a J.O.B.! Most places these days can be super selective because of the supply of workers due to our high unemployment rates and they use background checks and credit reports to evaluate applicants.
  • Getting a job is tough enough in this economy.  The last thing you want is to get rejected from the job because someone who is less qualified then you has cleaner credit.

Student loans

  • Unlike other types of lending, if you don’t have good credit you may simply not be able get the student loans you need.
  • If you have average credit, you’ll pay much more for your student loans. 
  • Schooling is expensive enough as it is.  The last thing you want to do is get charged twice as much as the classmate sitting next to you.  Good credit gets you the lower interest rates on student loans saving you thousands of dollars off the total loan!

Credit Cards

  • With good scores, you get the lower interest rates.
  • Good credit can also get you 0% credit cards – INTEREST FREE MONEY!!
  • You can have larger limits on your credit cards to for the big purchases.

Utilities (electricity, water, cable, etc)

  • You may have to pay a large deposit with poor to average credit and those with high credit scores don’t have to pay deposits.


Several other items that have an impact with bad credit:

  • You want to have the same resources that others with good credit have. You obviously don’t want to get denied for the things you need.
  • Get financed on the “big ticket items” – so you don’t have to use all your capital.
  • Automobile insurance premiums –  Most auto insurance places are checking your credit score and raising your premiums for credit “dings”.
  • Cell phone service: If you have bad credit, you are unlikely to be able to get a contract with a cell phone provider without a huge deposit, or worse, you simply will not get one at all.
  • Getting married: When you get married and your spouse has bad credit or if you do, you’ll find that their bad credit isn’t wiped out.  Instead, one spouse’s bad credit can make it difficult for the two of you to get financing to purchase a home or can cause your insurance rates to go up when you add your partner.
  • Getting the credit to start a business! You need good personal credit to finance your business.
  • Health insurance or life insurance – Many insurance companies are basing part of your policy off of your credit scores.  I don’t think that is fair, but it’s par for the course right now.

Credit repair techniques that improve your credit score can make the difference in getting employment, obtaining your dream home, driving the car you want and saving you thousands of dollars!

About the Author

Jeremy Maher dealt with harassing collector calls, debts piling up and damaged credit for years. He improved his situation and started helping others.   That leads us to today, where Jeremy has DIY solutions for stopping collection harassment, eliminating debt and improving your credit scores. His clients can improve their situation within the comfort of their own home.