Why is credit so essential in today’s society?
Good credit rules everything around us.
Think about your life goals and think about how your life aligns with the goals now, Are you satisfied ? Are you able to purchase that dream home you have been waiting on for that low rate? Are you able to purchase that luxury car without having to worry about extreme payments ? Or are you able to take out that loan with the low APR ?
Almost everything around us involves credit. Having good credit and maintaining good credit is an essential key to the society today. There are several reasons why credit is more important than it has ever been before. Listed below are 4 reasons why credit is so important and why it should be taken very serious.
You need it to live a comfortable life
Please understand that there are several factors that make up credit. Those factors are: Payment History, Amounts Owed, Length of Credit History, New credit, Credit mix. There is so much you can get with good credit versus not having good credit. Not maintaining a good credit score can limit you in life. It does not matter if you are buying a car, house, needing a job etc. In order to live a comfortable life, your credit must be up to par! Don’t make yourself struggle if you do not have to.
Employment Credit Checks
There are employers that conduct credit check before employment. They are looking for financial responsibility and if they do not see that from looking at your credit report, they may be hesitant to hire you.
Business/Personal/Auto Loans
Your credit score will determine if you qualify for an auto loan. It will also determine the amount you receive and the rate you will receive it at. Typically, those with higher credit scores are offered better lower interest rates and can qualify for larger loan amounts. The same thing applies to Personal loans. Credit is one of the main factor a company will look at to see if you are trusted to make payments on time. If you have ever dreamed of owning a business one day, please be informed that the same rules apply to receiving a Business Loan. Sometimes if you are trying to start a business you may need a loan to start it off. Obtaining a business loan and have a good credit score goes hand in hand.
Living expenses may require good credit standing
Credit checks are conducted by utility services. This includes telephone services, water, cable etc. Even before turning on electricity, the company makes sure your credit is in good standing. Why pay extra for start-up fees when maintaining great credit can save you money on fees you may not even think of? With every financial decision you make, you should keep your credit score in mind. These tools will help you make great financial decisions so you can live a great fiscally responsible life.
