Here are 10 Reasons Why Your Credit Matters


  1.  Better Interest Rates. If you have bad credit you will receive much higher interest rates, which means paying more money for the same product a person with good credit pays less for.
  2. No Down Payments or Deposits.  Did you know that you don’t automatically have to put money down for that new car? That’s right, down payments for cars, cell phones, and utilities are reserved for those with bad credit.
  3. Cheaper Car Insurance. Insurance companies factor in your score to determine your rate. This is an attempt to predict the likelihood that you will file a claim. If your score indicates you are high risk, they offset that risk by making you pay a higher rate.
  4. Get a Job. Did you know that some companies will not hire you if you have bad credit?, You could miss out on a job you are perfectly qualified for due to bad credit.
  5. Purchase a Home.  Even if you have $50k saved for a down payment, a bank will not extend you a mortgage loan with a FICO score of 500.
  6. Credit Cards… the good ones. Credit card companies offer their better reward programs to those with better credit. Rewards and Points Programs can actually MAKE you money! Cashback and travel reward programs can earn you some extra cash and send you on vacation all at the same time. This only works in your favor if you’re good about keeping those balances low and not paying the interest.
  7. 0% Financing.  Credit cards, furniture stores, and appliance stores often offer 0% financing and No Payments for up to a year in many cases for those who qualify with good credit.  This gives you the ability to pay the balance before the interest kicks in.
  8. Retail Financing. You may not always have a lump sum of extra money just sitting around to buy a new refrigerator or replace your 20-year-old washer and dryer set when it suddenly goes out. With good credit, you can walk into a  store and finance what you need. You’ll walk away with monthly payments instead of having to drop a stash of cash. But please, make sure you can comfortably afford the monthly payments. And do pay it back, and on time before the interest kicks in.  This means you must finance an amount you can afford to pay back in the allotted time.
  9. Balance Transfers. If you’ve qualified for a retail program where you received 0% financing for 6 months, but ran out of time before you had a chance to pay it off, don’t fret. With your good credit, you can transfer that balance to another credit card that is offering a similar 0% program to give yourself more time.  This is great recourse if the unexpected happens. Although i don’t advice on using credit as your emergency fund, it does provide an extra layer of security.
  10. Secure Personal Loans.  Emergencies happen, and being able to secure a small low-interest loan when needed is a great safety net. This requires much discipline and careful choosing, but having your credit to bail you out is a huge benefit to life in

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