Veterans are some of the most highly-valued members of our society. They make enormous sacrifices to protect our country, and they deserve all the help they can get when they come home.
When veterans return from service, they want to buy a house, finance a car, rent an apartment, or start a business. In order to do any of those things, they need good credit, which is critical for veterans because it gives them access to the best interest rates and terms on loans. It also allows them to get jobs and rent apartments.
Unfortunately, veterans with bad credit often find themselves struggling to get by. In this blog post, we will outline why good credit is crucial for veterans who are returning home, and how veteran financial services can help.
1) Access to better interest rates and terms on loans
One of the main reasons good credit is critical for veterans is because it allows them access to better interest rates when they take out a loan. For example, a veteran with good credit can get a lower interest rate on a mortgage than someone without good credit. This can save the veteran thousands of dollars over the life of the loan.
In addition, veterans with good credit can also get better terms on loans. For example, a veteran with good credit may be able to get a longer repayment period or a lower down payment. This can make it much easier for the veteran to afford their loan.
2) Access to jobs
Another reason good credit is so important for veterans is because it can help them get a job. Many employers now run credit checks on job applicants. This means that if a veteran has bad credit, they may be less likely to get the job they want.
In addition, having a high credit score can also help veterans get higher-paying jobs. This is because employers often use credit scores to determine how much to pay their employees. A veteran with good credit may be able to get a higher-paying job than someone with bad credit.
3) Access to housing
The quality of your apartment, condo, or house is important, especially if you are going to work from home. If you have bad credit, you may be denied rental housing or be charged a higher security deposit. According to Experian, a credit score of 620 is the minimum you need to qualify for an apartment in most cases.
In addition, if you have bad credit and want to buy a house, you may be required to make a larger down payment than someone with good credit. This can make it much harder for veterans with bad credit to become homeowners.
4) Higher limits on credit cards
Higher credit card limits are beneficial for two reasons. First, if you have a high credit limit, you can use your card more without damaging your credit score. Second, a higher credit limit may help you get a lower interest rate on your credit card.
If you are a veteran with bad credit, you may not be able to get a high credit limit. This can make it difficult to make purchases or in the event of an emergency. It can also make it difficult to transfer a balance from another card with a higher interest rate.
If you are a veteran with bad credit, there is help available. There are plenty of veteran services in Canada that offer a wide range of programs and services to help veterans improve their credit scores. For more information, visit the CreditPicks website via the hyperlink above.