A Good Credit Score

A Good Credit Score

Reasons to Maintain Good Credit

Good credit is one of the most important possessions that a person can have in today’s society. Much of today’s world is built upon credit and the ability to finance. Most everyone who purchases a home will be using a bank to handle the financing. Others might even choose to use credit to purchase a vehicle, a boat, or other large things. In some high end pet stores, financing options are available for the purchase of dogs. This should illustrate perfectly the importance of good credit.

The most important reason to maintain good credit is for the purpose of purchasing a house. Many people detest credit cards, personal loans, and other forms of credit, but they can’t get around a mortgage loan. If for nothing else, you need good credit to qualify for a mortgage loan. When purchasing your first home, good credit will enable you to make a small down payment and qualify for a nice, low interest rate. Since the mortgage is probably the largest loan that you will ever have to deal with, it’s important to lock in that low interest rate. Over the course of thirty or forty years, this will mean the difference in thousands of dollars.

There aren’t too many things that are more important than your home mortgage, but student loans might be close. Education has never been more important than it is today, as evidenced by government statistics found at NCES Annual Reports. College student loans have traditionally been some of the easiest to qualify for, but bad credit can put you out of the running. If you want to go back to school or you would like to help your children with their college costs, then having good credit will ensure the ability to get student loans. Since student loans are at a very low interest rate, this will save you and your family thousands of dollars over the long run.

Good credit is simply a nice card to carry around in your back pocket. It is an emergency plan, of sorts. If some large expense ever arises, such as a medical bill or family catastrophe, you will be able to qualify for a personal loan. With poor credit, you would have to struggle with lenders to get the money that you need. Having good credit gives you options to refinance your mortgage if you need some extra cash. Simply put, it is like having an insurance policy against anything bad that might happen.

Having good credit is one sure way to save lots of money over the long haul. There is no way to get around financing in today’s credit based society. Those with good credit get to take advantage of the prime rates offered by lenders. Those with sour credit have to deal with the wrath of lenders who are becoming increasingly tight with their dollars. As the real estate market continues to head south, it will become even more important to maintain good credit in order to be able to make that dream purchase.

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