WHY IS CREDIT IMPORTANT?
A good credit history is crucial in today's economy and can help provide access to financial products that help individuals save money and weather unexpected expenses more easily. More than just a number, credit scores can make or break your ability to achieve your goals, from buying a cell phone to buying a home.
1) Good credit gives you access
Having no or poor credit can make it impossible or costly to access credit cards, auto or small business loans, apartment rentals, jobs, mortgages, and more. Without access, it is harder to build assets and achieve financial stability.
2) Good credit saves you money
Even with access, subprime scores can result in high fees and interest rates that add tens of thousands of dollars in extra costs over a lifetime. It is estimated that poor credit costs the average Bostonian $236,000 more over their lifetime.
3) Good credit can provide stability during emergencies
40% of Americans lack $400 in savings, and when emergencies hit, without access to safe credit, many are forced to turn to high-cost outlets like payday loan shops. Access to affordable credit can help individuals weather emergencies more smoothly, without falling into debt cycles.
For all these reasons and more, a strong credit score is a critical component of financial health.