The Fear Of An Interest Rate Increase And Your Credit Score

There has been talk for many months that interest rates could be about to increase, following record low rates for some years. If they do, and it is almost certainly more a “when” than an “if”, what will be the impact on you and why will your credit score be important?

If you do not have any borrowings and do not intend to loan any money in the future then your credit score is زيادة متابعين تيك توك almost certainly not of any interest to you. However, at the other end of the spectrum for those with big mortgages it will be a huge issue. And even if you are just wanting to take out a loan to refurbish your kitchen or buy a new car, or to take a monthly mobile phone contract, then your credit score could be the key.

The problem is that as soon as interest rates start to noticeably rise there is going to be a lot of panic remortgaging. Already we are seeing some of the best mortgage deals on the market vanishing and credit card companies creeping up their card’s APRs. So when the central banks get around to increasing interest rates lenders are going to want to follow with more increases.

Currently record numbers of home owners are happily sitting on their bank’s standard variable rate mortgage. In the past this would have been an expensive waste of cash, whereas recently it has been a shrewd move. But once those rate rises are announced and start to take effect, that standard variable rate mortgage is not going to be so appealing.

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