There are many instances in life when your credit health gets examined. For better or worse, your credit score (and even credit history) can play a huge factor in achieving many of life’s goals.
Therefore, it’s important to understand how a credit check can pose a potential barrier to entry. And just in case it does, don’t worry; we’ll also cover a great way you can build your credit up fast, in order to open more doors to financial inclusion and freedom.
When Does Your Credit Come Into Consideration?
Applying for a Loan or Credit Card. This one is a bit of a chicken & egg predicament. In order to obtain the most desirable financial products, you need good credit in the first place. It can create a bit of a predicament for many consumers, whether they want a credit card with the lowest possible interest rate and highest credit limit, or if they want to borrow a large loan amount.
For loans in particular, the different categories are plentiful and all represent different key life objectives: education (student loan), buying a car (auto loan), buying a home (mortgage), or just borrowing a lump sum to fund a big purchase or refinance high-interest debt (personal loan).
Getting insured. Lending products aren’t the only financial services that take your credit into account. Whether you need life insurance, car insurance, homeowner’s insurance, or another form of coverage, your credit report will almost certainly be reviewed. It is not the only piece of the puzzle, as other individual factors will also be considered during the approval process. In order to get the best premium available, however, an applicant must prove to an insurer their ability to make timely and complete payments, to prevent any potential lapses in coverage.
Housing. While housing and lending go hand in hand when mortgages are considered, your credit history can also be put under the microscope if you’re renting. It is very common for your broker, potential landlord, or property manager to run a credit check when you’re applying for an apartment or other rental property. As a result, it is beneficial for an applicant to have a good credit score, lengthy bill-paying history, and low debt-to-income ratio.
Looking to build your credit fast? MoneyLion’s Credit Builder Plus helps the majority of users raise their credit score by 42+ points* ― in the first two months alone!
How Can You Build Your Credit?
If you find yourself in a position where you need to repair or just build your credit in general, you may want to consider MoneyLion’s Credit Builder Plus. More than just a credit-building loan (a loan with the primary intention of boosting your credit), Credit Builder Plus is a dedicated program giving consumers all the tools they need to build their credit history, boost their score, monitor progress, and even earn interest on savings.
With Credit Builder Plus, you can establish 12 months of credit-boosting payment history, which is reported to all three credit bureaus. With 24/7 monitoring, you can always view your progress and how far you are from certain financial goals.
Unlike other credit builders, Credit Builder Plus gives you access to a portion of your funds right away. The rest is put into what is called a “Credit Reserve Account,” which allows a portion of the funds you borrow to earn interest. After paying off your loan balance in full (which is based on your current pay cycle) you will then have access to the remaining funds in your Credit Reserve Account.
When life’s opportunities come knocking, it’s important to be as prepared as possible. A history of strong and stable credit can go a long way. So, if you find yourself coming up short, Credit Builder Plus can help you catch up.
Want to redefine what your credit can do for you ― starting today? With Credit Builder Plus from MoneyLion, you’ll have access to all the features needed to boost your score fast.
* Credit score improvement is not guaranteed. A soft credit pull will be conducted that has no impact to your credit score. Credit scores are independently determined by credit bureaus. Data was sourced from credit score data from over 74,000 Credit Builder Plus members with an active loan between August 7, 2019, and February 18, 2021. Credit score improvement is not guaranteed. Credit scores are independently determined by credit bureaus. MoneyLion is not a Credit Services Organization. Credit Builder Plus is an optional service offered by MoneyLion.
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