Reasons to Have Good Credit

Take ControlIn this day and age, it seems like a good credit score is necessary to move forward with almost any new chapter of your life. Whether you are buying a car, house, or just applying for a credit card, a clean and full history seems like the key to Emerald City. We have all heard about how individuals can easily dig themselves into a quite a hole of debt and, consequently, a bad score. However, many young adults aren’t fully aware of how many doors could potentially be shut to you (or a little harder to open) when you’re dragging around the ball-and-chain of a low credit score.

Landing Your Dream Job

Some people think that’s wrong for an employer to require a credit check before hiring an individual, but the reality is that companies sometimes use this as an indicator of  how responsible and reliable you will be. If you’re someone who doesn’t keep up on their bills, and you keep applying for credit, this may be a red flag.

Strengthening Your Relationship

Study after study has confirmed that money is the number one reason for divorce. Debt has a nasty habit of working its way into marital conversations and can ruin romance quite quickly. Furthermore, the bad credit history of one individual can inhibit both from obtaining a dream home or car, so blame can easily be thrown around.  Before getting married, make sure that credit history is communicated, with a clear plan on how to fix up any mishaps.

You Can Save Money

Not having any debt and having a good credit score could save you money. With a great credit score, you will be approved on loans and credit cards faster, while also receiving a lower interest rate on payments. Interest can accumulate very quickly when you have a higher rate, making debt easier and easier to accrue as your situation worsens.

Lower Insurance Rates

Not many people realize this, but when you go to sign up for an auto, business, or home insurance, you can actually receive a better rate if you hold a good credit score. Insurance companies will check your rate because they want to make sure that you won’t default on your monthly payments. If you had poor credit, they would be at risk of losing their money.  A higher risk means a higher interest rate. However, you are still in luck! Shopping around and using places like AutoCreditExpress.com for car payments, or bankrate.com for home or business, will help you find the best rate associated with your credit.

A credit report that is in good standing is crucial. If you have poor credit, but you would like to work on it, there are options such as Bettermoneyhabits.com that will help you improve your score. If you have a defaulted loan or credit card, you may be able contact the creditor and set up a payment plan. Showing that you are working towards improving your credit score is a lot more than just letting it go and potentially putting a bad reputation your name. You must always keep at it and never slip.  Once you do this it will be much easier to reap the benefits of having a good credit score.

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