Most of us had a lot of learning experiences when it came to money. Our eyes got bigger than our wallet. Even if we were fairly responsible, building credit takes time and we all start with a big, fat 0. Unless you’re getting student loans, most banks and lenders won’t even touch you at that point. You have a lot of work of proving you can pay your bills ahead of you.
So, what happens when you do finally put in all the work and get a good score? Are there any noticeable benefits that can make life easier for you? The answer is YES! Improving your credit score may not be easy, but it can be one of the best moves you make, along with paying off debt. Let’s look at five ways your life will improve with a better credit score.
1) You Have a Better Chance at Reaching Your Goals
Whatever your goals are in life, having a great credit score can set you up for success. If you want to go back to school, you can’t do it if you’ve defaulted on previous loans. Want that new car or truck? Starting a family and need a bigger home? Want to start a business and need to borrow cash? All these things require a great credit score. You can still attain some of them with a lower score, but that ultimately is not the way to go, as we’ll discuss below.
2) You Might Need Help
Emergencies come when you least expect it. You might be living paycheck-to-paycheck and suddenly your vehicle breaks down. If you have credit cards, you have the money to get the repairs you need. You can name anything that might happen where you’ll need money. You can get injured and lose out on work and only get a percentage of your normal pay. The roof can cave in. Whatever the reason, having good credit means you have more options.
3) Life is Cheaper
Interest payments are a major killer of budgets. If your credit score is low, odds are you’ll be expected to make higher monthly payments and shell out more for interest. Once you begin to work on your credit score and have a record of on-time payments, you can refinance. If you decide to get a loan in the future, not only will you be accepted, but the loan might even be interest free!
4) Housing Options Open Up
With bad credit, it can be difficult to get a landlord to accept you or even an apartment to rent. Buying a house is out of the question. You may be forced to live in a bad area for a time if you can’t figure it out. Most housing places want to see a history of on-time payments before they’ll let you rent or buy with a mortgage.
5) It Just Feels Good
Believe it or not, there’s a major sense of accomplishment for having all your financial ducks in order. In a great scenario, you’d have money saved in the bank, debts paid off, and a good score for if you ever need it. Life will be much easier, cheaper, and less anxiety ridden. So many people struggle through many decades of their life, so finally having it all in order will feel really good.
