In the world of personal finance, a person’s ability to keep themselves stable is going to rely on the tools that they have at hand. One of the best tools you can have in your financial arsenal is good credit. It’s the ultimate bargaining chip when it comes to grabbing discounts, and it also can help you in a multitude of other ways. Here’s how good credit can improve your financial life.
Perk #1: Good credit will make many necessities cheaper.
Phone companies will give cheaper phone plans to those with better credit, and also will give people the ability to pay their phones in installments through loans. Better credit also means cheaper insurance rates. Great credit is also often required for low cost apartments, and when it comes to affordable mortgages, it’s also a must. Trust us when we say life will be a lot cheaper in general.
Perk #2: Good credit will make you easier to hire.
Many jobs, even those that have nothing to do with finance, do credit checks nowadays. Having great credit can open up more doors for you in the working world, which in turn can also mean better salaries. So, not only will your cost of living quickly become lower, but you also will have more opportunities to make more money.
Perk #3: When you have good credit, you also can get credit cards that aren’t a royal pain.
The first thing that many people do once they pass the 700 credit score mark is apply for good credit cards, then transfer the balances they have of their old cards to the new ones. They often find that the newer, better credit cards have rewards programs that can cut costs of things like hotels, restaurants, or travel. They sometimes get cash back. Credit cards no longer seem like the enemy they once did.
Perk #4: You get more confident.
Being confident in your ability to handle personal finances has a slew of perks when it comes to dealing with life in general. Since you know you have that good bargaining chip of great credit, you will be more aggressive in price negotiations, which in turn will likely get you a better price. Being confident also will help you make better decisions and feel less stressed. If you work in finance, that confidence might even translate into better work.
Perk #5: It’s all about the opportunities.
The big thing that you probably already noticed is that having good credit will open up doors for you that would have otherwise remained shut. The benefits of good credit will increase the higher that your score gets, so no matter what your score currently is, remember that life can be even better a couple of points up the credit score ladder. Even if you have fair credit, life’s too short not to want an 850 on your report.