Data Facts Lending Solutions Blog

The Importance of Good Credit

by Jennifer Hamby

Feb 25, 2015 10:00:00 AM

excellent_credit

Want to save thousands of dollars on all your biggest purchases?  Then there’s only one thing you need to do: MAINTAIN GOOD CREDIT

Today's economy runs on credit. If you want to get a mortgage loan for a house, or a student loan to pay for college, or if you simply want to purchase lunch, or gas on a credit card, somewhere a company is extending credit to you based on your creditworthiness.  Your “creditworthiness” is defined by your three-digit credit score and is the key to your financial life.  

Your credit score is used to determine what rates you’ll pay for big life purchases such as auto loans and mortgages. Good credit can be the make-or-break detail that determines whether you'll get a mortgage, car loan or student loan.

On the other hand, bad credit will make it more difficult for you to get a credit card with a low interest rate, and increase your credit limits, and it will make it more expensive to borrow money for any purpose.

But even if you're not in the market for a loan, good credit can have a major impact on other areas. 

Your credit information can be a factor in whether or not you can rent a nice apartment, how much you pay for insurance, or whether or not you can get a job.  Potential landlords, insurers and employers frequently use credit information as a litmus test to see if the people they are dealing with are reliable and responsible.

Bad credit can suggest you're a risky bet. While bad credit may only show the details of how you deal with debt, some will extrapolate the characteristics from your financial life to other situations and assume that your bad credit implies that you may be just as irresponsible driving a car, taking care of an apartment or showing up for a job. 

Good credit can signify that your financial situation -- and the rest of your life -- is on the right track.  For all these reasons and more, you want to keep your credit as stellar as possible.  Check out our eBook on the Top 10 Credit Mistakes 

  Download eBook

Topics: credit reports, Credit Score, Improve Credit Score, credit cards, credit history

Find out the Top 10 Credit Mistakes and how to avoid them!

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