What’s the Point of Having Good Credit?

August 19th, 2013 | Comments Off on What’s the Point of Having Good Credit? |

good creditTo hell with having good credit, right? Who needs it anyway! It’s a corrupt system, and once neglected, is nearly impossible to rectify. Besides applying for a loan, what good does my credit score do me?

Are you one of the many people who think that way? You’re not alone if you are. Heck, I was one of them. When you don’t have a lot of cash flow and a small to nonexistent savings account, without a good credit rating, life can be tough. Just getting a dependable vehicle can be a struggle.

However, if you do have a lot of money rolling in and you do have a healthy savings account, neglecting your credit is like throwing money out the window. So many things are influenced by credit. Here’s a just a few:

  • Any kind of Loan (auto, home, business, etc.)
  • Utilities – When moving into a new home, whether purchased or renting, most utility companies will run a credit check. Your credit will effect your deposit and approval.
  • Insurance – I recently purchased a new truck, and a few months previous, a new home. When shopping around for home and auto insurance, they required a credit check.
  • Home Security System – Having worked for a home security company in the past, I know that those with bad credit will be denied the ability to make monthly payments.

And the list goes on and on. Before you know it, Disney Land will require a credit check before allowing you to enter their theme parks!

So regardless of your income, it would be beneficial to pay attention to your credit score. Money is money, and with a little bit of effort, you’ll be able to save, and look more credible while doing it.

One of the easiest ways to build your credit is by using a credit card to pay your bills, and then paying that card off every month.

And here’s a tip most people don’t know……if you plan on purchasing a vehicle anytime soon, or have recently purchased one, be sure to keep the loan for at least 13 months. If you keep an auto loan less than 13 months, it won’t effect your credit in a positive way. They want to see you making payments on time, on a consistent basis.

If you’re looking for a great resource for building a better credit score, visit Professional Credit Help.

David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.

Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!

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