Surprise Your Credit Score Matters More Than Ever In 2016

Dated: 03/26/2016

Views: 121

If you entered into adulthood after 2008, you probably became accustomed to thinking your cash savings are more likely to grow when safely tucked under your mattress than in most bank accounts, and that interest rates on auto loans and other loans are set in the single digits. But in December 2015, after seven years of fostering a low-interest environment intended to encourage consumer spending and investing, the Federal Reserve moved to increase rates by 0.25%. While the interest rate hike was certainly on the low end, it signals a shift for consumers -- one that makes maintaining a high credit score even more of a priority going forward.


Here's why.

Carrying auto loans will be more expensive

While interest rates on auto loans didn't see an immediate jump with the Federal Reserve's announcement, future increases will eventually hit consumers in noticeable ways. With auto loans tied directly to the Fed's benchmark rate, an interest rate increase will impact new loans (existing auto loans are fixed). In addition, with subsequent interest rate increases, the cost of vehicles themselves could rise as some dealers opt to decrease inventory in an attempt to skirt the cost of paying higher interest on the cars in their lots. Other dealers might stick to promotional offers and sales to incentivize sales, but these offers are reserved for those with good to excellent credit. (Shoot for 720 to land the best rates.)

>> Continue Reading

Want to Advertise on this Site?

Latest Blog Posts

Real Estate 2018 What To Expect

Real Estate 2018: What to ExpectAs we head into a new year, the most common question we receive is, “What’s the outlook for real estate in 2018?” It’s not just potential buyers and sellers

Read More

Jan 3 2018 53047 1

3 Questions To Ask Before Buying Your 1st HomeThe real estate market is constantly changing, so of course DO YOUR RESEARCH! DO NOT jump the gun on this one! Unbiased advice from family and peers may

Read More

Ditch The Jumbo Loan

Have you heard?We sold the home at 911 W Woodlawn in Beacon Hill in 3 days! Multiple offers! If you have a home to sell, contact The DeFrees Group for a free market analysis to find out what

Read More

Sneak Preview In Beacon Hill

We hope you all had a wonderful Thanksgiving! Our family all got together at our oldest son, Mike's house. Because of schedules and extended family, we are usually missing one or two. We have 7

Read More