Surprise Your Credit Score Matters More Than Ever In 2016

Dated: 03/26/2016

Views: 143

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

Latest Blog Posts

HOME BUYING MYTHS

Home Buying MythsAlthough the internet can be a great resource for a variety of information, a lot of that information is incorrect. One of the most important and expensive decisions in your life,

Read More

Home Decor Trends

Ready to mix up your home décor this year? Here are the top five hottest trends homeowners are loving right now!Industrial stylings. From pullies to Edison bulbs to vintage furniture to

Read More

Demand for Homes Still High in San Antonio Area

San Antonio – For the fourth consecutive month, area homes sales have surpassed 3,000 total sales with August reporting 3,236 homes sold, a nine percent year-over-year increase. The average

Read More

blog

Read More