Why do you need good credit?
OK, so you have bad credit and you pay cash for everything. So who cares if your credit is bad? The fact is that your credit history not only may keep you from getting a loan for a car or maybe even impact your ability to get a job. Just look at some of these examples below and good credit begins to look like a requirement for the good life.
- Insurance premiums for your car, home, life and just about anything you can insure is impacted by your credit score. The worse your credit the more it costs. That means your working longer to get the same insurance value.
- How about saving money on interest? Oh your cash only. What happens if you have faithfully saved for a big purchase. The day after you have made that purchase your refrigerator or car or roof on your house breaks or is damaged. Not enough cash to go around means you need a loan. Bad credit means high interest rates. That great deal you got can be eaten up in interest.
- So now you have a credit card application. The higher the credit the higher the credit limit on your credit card.
- Do you need to have utilities in your name? Your credit score can mean a big deposit amount. After all a business would want to reduce it's exposure to poor credit risk, who knows they may walk from a big monthly bill.
- Looking at new homes? Many mortgage companies want credit scores of 640 minimum. The days of buying a house with credit scores of 600 or less are long gone.
- Well don't buy a house rent an apartment or home. Most all rental properties want to have a prospective tenant to provide a credit check. High scores can help you qualify since a big number provides confidence to the owner.
- How about a new car? Is your credit so bad that you need a co-signer. Will just anyone co-sign for you? Remember a co-signer is saying they will pay the loan if you don't.
- Are you an entrepreneur? If you need cash for your new or old business, your bad credit may stand in the way of getting that loan that will save the business.
There are lots of good reasons to maintain your credit. Doing the most with what you have means keeping your credit in good condition.