Credit scores can affect your life in many aspects. Primarily, your credit score affects the qualification of whether or not you will be able to get a loan for either a car or a home, but it can have an influence in many other ways as well. Of course, getting the loan is based on other criteria as well, but if you have a poor credit score, then you can be sure you’ll have to pay a lot more in interest for a loan, if you’re even able to get one at all. You might even have to find a suitable co-signer, which may prove to be difficult.
If, on the other hand, your credit score is in good standing, then you’ll be offered better terms, such as lower interest rates from lenders. When you go to purchase a car or home, you won’t have to stress about having to spend more money just because you let your credit go downhill. In fact, because you have great credit, you will be saving money in the long run. With the lower interest rates, it will take you less time (and less money) to pay off this debt potentially saving you thousands, or even tens of thousands, of dollars.
While sites like Credit Karma, Credit Sesame and Quizzle are best known for giving their customers their credit score at no cost, this isn’t the real benefit they have for most people. Yes, knowing your credit score is important, but even more important is learning how the actions you take affect your credit score in a positive and negative way. By gaining a better understanding of how your credit score is calculated, and how the actions you take will affect it, you are in the driver’s seat in determining your future score. All these free websites help educate you to better understand your score, and what steps you need to take to make it better.
In addition, Credit Karma and sites like it offer tools to their users to see how specific actions can help or hurt their credit score. This allows you to input a number of different scenarios, and to see what happens to your score with each. It also allows you to see results even before you take an action so you can make better decisions before the act. This can help you avoid making a financial move that could hurt your score and ultimately cost you more money.
By helping you better understand about how credit scores work and how the actions you take can effect them, the free credit sites help you to save money by helping you improve you credit score.