There are a lot of benefits to having good credit, but sometimes that goal feels so far away that we don’t really think about it. Is it true that you really can indeed get better credit than what you have now? Absolutely. But you have to have a sufficient reason to pursue higher financial goals. There are some good benefits to being a top notch borrower that need to be highlighted, so here they are below.
First and foremost, when you become a top notch borrower the world just opens up to you. You get better interest rates on loans and credit cards, and you will usually have much more flexible payment dates. Lenders know that they can trust you to pay your bills on time when you say you will. If you have great credit, you also get very good offers in the mail – usually for those coveted zero interest credit cards, or opportunities for home equity loans at a good rate.
Mortgages are a whole different ballgame when you have good credit. It means that you can not only get good mortgage terms from the very beginning, but it also means that you will be able to get remortgaging options very easily as well. If you have bad credit, then mortgages are almost out of the question. If you do find a lender that will extend a mortgage to you, it will be for a lot less than what you would expect, and the interest rate would also be a lot higher. This can make it hard to pay for the mortgage over time, and refinancing is almost always out of the question at that stage.
What about if you wanted to get a new car? The same applies — you would be limited by a monetary amount, as the lender will want to reduce their risk as much as possible. In addition, the interest rate would be very high.
Contrast that with someone that has great credit — they would not have to worry too much about the interest rate. It can be downright low in order to attract them into a contract, which means that you aren’t going to have to worry and fret about getting the right deal. You’ll be able to afford more vehicle as your payments will be much lower.
The finance world does indeed favor those with good credit ratings, but that doesn’t mean that you can’t clean up your credit, wait a few years, add positive credit lines to your account, and then reap the same benefits. You have all of the power in the world to change your situation, so don’t ignore that — good luck!