You’ve heard it before. Many times over, they’ve told you how important it is to have good credit. The U.S. is a country that runs on good credit scores, but if you’re not from here or you’ve simply never cared too much about credit card usage, you may not be familiar with the why of building up good credit. Here are a few reasons why it matters:
It can help you get lower prices on things like insurance
If you’d like to get good rates on anything from insurance to car loans, you’ll need to have a good credit score. In fact, you want more than just a good credit score. An excellent credit score is what you really want to go for if you’re looking for the best interest and loan rates. A good credit score makes it easier to shop around your options and find the best deal on the market. Saving money on must-haves like insurance is a great reason to start working on your credit score today.
It makes it easier for you to rent places you want to rent
Another area where a good credit score matters a lot is when it comes to renting a space. Whether it’s a home or an apartment, property managers check your credit score to determine whether they want to approve you as a tenant. You want to be confident that you’re doing what you can to make sure you get the best living space possible.
More expensive or luxurious dwellings are going to be extra picky about your credit score, so if you’re someone who cares about the bougie lifestyle, it’s a good idea to get that credit score up so that you can more easily get approved when it comes to where you want to live.
You can get better credit card options
The reality is that when you have a good credit score, you can get better credit card options that offer great rates and rewards. It may seem like much if you’re just looking at it like fine print. However, these rewards and APR percentage can actually give you money back, so if you’re all about making and saving money, a good credit score can help make this happen while you’re spending money on your CCs. If you’re getting a new credit card to help improve your credit score, already having a decent score will help you get those kinds of features that make a difference in your money and spending.
It can make it a lot easier for you to buy a home
If you want to buy a home and spend less on interest rates and mortgage prices, it’s a good idea to start working on your credit score. An excellent credit score is going to do a lot more for you than a poor one would, or even a good score would. Lenders are bound to offer you better terms when they see that you have a top-notch score than they would if it’s obvious that you haven’t kept up with payments.
You may pay higher deposits without it
Whether you’re trying to rent or just get some services, you may find that you’ll have to pay higher deposits because of a lower credit score. You may get approved for a great apartment but have to pay higher move-in costs because you have shoddy credit.
Getting services for important things for your quality of life may be harder without a good credit score, so pay attention to the way that building up good credit can be important for your utilities, TV, and more.
Your credit card payments matter. Building up good credit makes a difference. If you want to start improving your credit, it’s important to understand how important it can be to your quality of life. Whether you hire a credit advisor or start budgeting for on-time payments, work on your credit card usage today!