Why is it important to have good credit?
Question by Cameron: Why is it important to have good credit?
I have some idea but I want to get more insight and understand this more. In addition to the obvious answers I want especially want some less-obvious answers to “What are some consequences of bad credit” and “what are some rewards of having good credit” etc. Also what is a good credit score?
Best answer:
Answer by boomer_f_16
Only reason to have a good credit score is so you can get the lowest interest rate possible on a mortgage. Other than that, it is useless. Why? Because it is used as a tool for borrowing. And borrowing money and going into debt is bad.
Add your own answer in the comments!
it’s simple. you want to have good credit when it comes to making those big purchases, such as a house or car. if you don’t have a good credit history it’ll be tougher to get a loan for the house or car.
1, It will be very good if you want to purchase a big thing like a car, a house etc. Your APR will be much lower.
Especially for your house.
2, It will be helpful for your future job hunting. Now, a lot of employers do credit checks. It will show how much you own, how well you pay off, etc. It will show that how responsible you are. It can affect your future jobs.
Good luck,
Good credit will allow you to have a lower auto insurance premium.
There are many reasons you want good credit. Credit is often referred to as your future ability to pay back. Credit is used as leverage- other peoples money. It helps you obtain financial assets like real estate and stocks. If you use the banks money, you have access to more capital. Maybe one day you want to start a business. It also gives you the ability to get capital at lower rates and terms. Should you have poor or bad credit- the opposite would occur. A great choice in learning about bad credit loans is http://www.loansfinancingcredit.com/bad-credit-loans.html
In today’s age, you credit score may determine you getting a job or not. In higher jobs, debt can be seen as a motivator for you to steel from them. Thus, you will not be hired. Also, if you want a house in this economy, you need high scores. It will also help you get a bank account, lower interest on personal, student, automotive, etc loans. I good credit score means a higher credit limit. Anytime you need help financially, institutions will be willing to help you our just because the score shows you pay what you say you will and are responsible enough to only get what you can handle.
Bad credit will get your cards turned off and possibly your bank account, too. Your wages may be taken from you before you even see them and go to creditors. Bill collectors will call you at all hours and push you to pay something. You may lose your job, house, etc. If something were to happen, say, you needed surgery, you could not get financing, thus you would be screwed. With bad credit, you can’t get an apartment, utilities, or even a cell phone in your name. That means no water, electric, or even a roof oer your head. With a bad score, you will have to pay HUGE amounts of “good faith” cash to these things if you want them (500 deposits for cell phone plans without good credit is pretty standard).
A good score is around 700′s or higher. The 600′s are fair, and anything below a 600 is horrid.
It takes years to get a good score and only seconds to ruin it for a life time.