Step 2 – Understand Why a Good Credit History is Important

A good credit history is necessary to obtain lower fees and interest rates. The higher the interest rate and fees, the less funds you have available for savings and spending. Loan rates are usually determined on the basis of your credit report and credit score."

For example:

"A" loans are for people with good to excellent credit, and have the lowest interest rate "B" or "C" or "sub-prime" loans have higher rates due to past or current credit problems such as late payments

At Third Federal, our interest rates are not credit-driven.

With good credit:

• It increases the confidence level of lenders
• You can borrow for big expenses such as a car, your home, and education
• You can borrow money at a lower cost