The Benefits of Having and Maintaining Good Credit Credit makes the financial world go around and provides individuals the opportunity to own homes and cars that they may not be able to afford at one time. Most adults have at least one type of loan and have either taken advantage of their loans to build good credit or develop bad credit due to nonpayment and late fees.
What if I Already Have Good Credit? If you want to buy a home and have no credit, you will more than likely not qualify for a home. Therefore you will not have the chance to own a home until your credit is repaired and time has gone by to prove your creditworthiness. You need credit to purchase a home. You even need credit to rent a home. If you go to rent a home and your credit report shows the landlord that you have too much debt or you have not made payments on time, the landlord probably won’t give you a lease. Other times landlords charge the first and last months’ payments in order to rent the home.
How Long does it Take to Realize the Benefits? You need credit to do other things such as apply for a job. It is quite possible to apply for a job and have the employer, upon your permission, request a copy of your credit report. The whole reason you have a credit score is to allow lenders to review your credit to understand your financial responsibility. Employers believe that if you take responsibility in your finances, you will be a responsible employee.
A Good Way To Start You need good credit to do just about everything involving commerce in today’s society. Unfortunately, if you do not have some type of credit, you will be turned down for many things. We all want to eventually buy a home at some time in our life; this will definitely not be an option if you don’t have credit. We need credit to get credit. As crazy as it sounds, this is true. We will not be able to get a loan or credit card unless we have some type of credit established.
Establishing Good Credit It is possible to get a small-limit credit card in the amount of $100 to $300 and therefore establish a solid credit standing. You need credit and will continuously need it throughout your life. It is best to follow the guidelines that help to determine your credit score in order to keep a good credit standing and help your chances to receive a better loan.