Many times we like to neglect the how significant it really is to be up to date with our finances. We hear about credit scores and the importance of them all the time, but do we really know how our credit scores affect us?
Why is A Good Credit Score Important?
As one plans for a future, buying a house is usually at the top of the list. We plan to buy a new car, apply for better jobs, and even apply for plastic money. Having good credit is crucial to achieve our own personal goals.
Buying A House
– Now a days, banks are being extremely tough on future home owners. Having good credit can make this entire process a lot easier. Being able to maintain a higher credit score can get applicants lower interest rates and many mortgage offers instead of only having to accept what is given to them. This can save you thousands of dollars.
Buying A Car
-This type of loan is smaller than a house loan, therefore it is easier to obtain a car loan with not so great credit. Unfortunately, there would be much higher interest rates opposed to an applicant with a higher credit score. Having good credit even allows you to be able to negotiate for lower interest rates.
Applying For A New Job
-Believe it or not, employers are now running credit on potential hires. This is very common for government and financial fields. It is thought that people with higher credit score are more responsible and trustworthy and these are some qualities that employers really look for.
Applying For Credit Cards
-Maintaining a good credit score is key when applying for credit cards. You are offered lower interest rates compared to someone with bad credit, they are always prone to higher interest rates. This applies to everything. Even when applying for a loan having a not-so perfect credit score can mean higher interest, this is how companies outweigh the chances of one not paying back.
Here Are Some Helpful Tips to Help Improve Your Credit:
- Review credit report closely
- Make early payments
- Make payments on time
- Pay off loans before end of the loan period
- Pay off credit card balances in full monthly
- Set up payment reminders
Having good credit can help open many doors and also help us achieve life goals. Always keep up with your finances and be aware of your debt. As you can see, these are some of the benefits to having good credit. Do not let decisions you make now keep you from being able to own your own home, etc in the future.