Even though access to credit scores is more straightforward than ever before, many Americans have never taken the time to check their score. In fact, according to a new NerdWallet survey, 11% of Americans have never checked their credit score. This lack of concern seems to stem from a widespread misconception that credit scores do not heavily influence everyday life.
While many people know that credit scores can make it difficult to secure a bank loan, most fail to realize that credit is checked for numerous reasons – most of which have little to nothing to do with borrowing money. In fact, NerdWallet’s survey revealed that:
- 23 percent of Americans were unaware that bad credit affects their ability to rent an apartment.
- 45 percent of Americans don’t know that bad credit means they will likely pay more for car insurance.
- 49 percent of Americans were unaware that bad credit will limit cellphone service options.
- 52 percent of Americans had no idea that bad credit could cause them to pay higher utility deposits.
Checking Credit Scores, All of Them
From higher rates and more restrictions to problems securing a job, your credit score can negatively impact your life when you least expect it to. Often when you desperately need your score to work for you, not against you. The first step in taking control of your credit score is to secure your credit reports.
It’s critical that you realize there are more than one credit score. Many Americans assume there is one credit score to worry about, since the reference is often singular: “credit score”. These scores will also differ depending on who’s behind the calculations (e.g. lender or credit bureau) and the reason. For example, the model for mortgages is different from the scoring model for a car loan.
Rebuilding Your Credit Score
A bad credit score can reach beyond your personal life and impact your business endeavors. For example, it will be next to impossible to secure a loan from a traditional bank or financial institutions. The good news is that your credit issues do not have to be permanent. You can still qualify for a business loan with poor credit.
Alternative lending options have become increasingly popular in recent years. An alternative lender does not consider debt ratios, tax returns, profit and loss statements or balance sheets; they look at your cash flow. This is one of the many reasons why those who struggle with less than perfect credit turn to reputable alternative lenders like eMerchantBroker.
For example, a business cash advance from EMB provides much needed financing while simultaneously helping you rebuild your credit – all in as little as 24 hours. If you’re struggling with bad credit, tax liens, bankruptcy or even the TMF list (“black list” for merchants), EMerchantBroker can help you get back on your feet.