When you check your credit score, you might be used to seeing it described as fair, poor, good or excellent. Lenders see those categories, too. They just use different labels: subprime, non-prime, prime and super-prime.
You probably already know that your credit scores are used by banks, credit card issuers, car dealerships, insurance companies and more to determine the risk of lending you money or providing services, but it seems that there is a very real connection between your love life and your credit score.
It's not the end of the world if you have bad credit. Actually, millions of Americans have credit that's rated below average. While it's not something you might be proud of, it's important to know that there are some ways to make it better.
Recent trends have shown that Americans, particularly millennials, are weary of using credit cards. The problem largely stems from the way credit cards are viewed today. They are typically perceived as a "last resort" for consumers who can't afford to pay for their purchases.
Many things today rely on credit scores -- anything from getting approved for a credit card to landing an apartment. With enough patience and financial prudence, you can turn yourself into a lean-mean-credit-mastering machine.
The economic recovery has not benefited Americans equally. We all know that. But few facts underscore that point more clearly than the startling number of consumers whose financial futures have been put on hold by subprime credit scores.
It's been said many times that having a low credit score can hurt your finances. In addition to the recognizable consequences, there are a few lesser known, but still hazardous, effects bad credit can have on you.
When going to look at an apartment, bring copies of pay stubs, copies of prior years' tax returns and any proof of additional income. It will not only provide proof of income, but also of being an organized person who is serious about taking care of business.
As the housing bubble was growing, many Americans with low credit scores were able to benefit from a variety of housing loans. However, the boom led to the bust that followed, and financing a new home purchase through a bank with subpar credit has become far more difficult.