Why does credit matter?Good Credit is the Key to Financial Independence.
Over the course of lifetime, good credit can save you as much as $250,000 in lower interest and fees
Good credit gives you access.
When you rent an apartment, buy a car, get a credit card, or make almost any other financial decision, your credit score will be a factor in getting approved. Your credit score is based on information from your credit report: a summary of how you have paid bills and managed financial accounts in the past. Lenders and others use this information to decide if they’ll do business with you.
Building strong credit is one of the best things you can do for your financial well-being. Learn more about how credit building works. Learn more about how credit works.
Good credit improves your options and saves you money.
Good credit can help you save as much as $200,000 over the course of your lifetime.
It can also improve your options in life:
- Loans and credit cards – People with higher credit scores often receive better rates than people with lower credit scores or no credit history at all. Use this handy tool to calculate cost savings on common loan types. Use this handy tool to calculate cost savings on common loan types.
- Housing – Landlords can use your credit information to decide whether you can rent at all and how much of a security deposit you provide upfront.
- Cell phone and utilities – Cell phone companies, utility and cable companies will check your credit reports before approving you for service.
- Employment – Employers may review credit report information when you apply for a job, especially if the job involves handling money, like a cashier or bank teller.
Good credit can provide stability during emergencies.
Access to affordable credit can help individuals weather emergencies without turning to high-cost lenders.
Good credit can help you achieve your goals.
Your credit history can be an important part of achieving longer-term goals. A good credit history can help you:
- Go to college – While credit history is not considered for most federal student loans, some other student loans do require a credit check. Learn more about federal and private student loan options here.
- Buy a home – A good credit score can save you tens of thousands of dollars in interest over the life of a mortgage. This calculator shows how a good credit score can save you money on mortgage as well as auto loans.
- Start and grow a small business – Most entrepreneurs must rely on their personal credit history to access financing, acquire materials and inventory, access rental space, and manage business cash flow.
There is no one size fits all approach to credit building. Choose the option that is best for your situation, always pay your creditors on time and credit score improvement will follow! Click the links below to connect with a coach or download free resources!