How Healthy Credit Saves you Money
Believe it or not, having a healthy credit score is very important and can actually save you a lot of money in the long-run.
What does Healthy Credit Mean?
Healthy credit refers to a combination of a good credit score and good credit history. Your FICO credit score is a measure of your credit health and financial responsibility and is used by banking institutions and lenders to determine when and how much to loan you. FICO categorizes “good” credit as a score between 670 and 739, “very good” credit as a score between 744 and 799, and any score of 800 or above is considered “excellent.”
Believe it or not, having a healthy credit score is very important and can actually save you a lot of money in the long-run.
What does Healthy Credit Mean?
Healthy credit refers to a combination of a good credit score and good credit history. Your FICO credit score is a measure of your credit health and financial responsibility and is used by banking institutions and lenders to determine when and how much to loan you. FICO categorizes “good” credit as a score between 670 and 739, “very good” credit as a score between 744 and 799, and any score of 800 or above is considered “excellent.”
You Easily Qualify for Loans
The first thing lenders look at when you apply for a loan is your credit score. Having healthy credit shows the lender that you’re reliable. Whether you need a credit card, a private loan for education, or a small business loan, you are significantly more likely to get approved with a good credit history.
- You can Afford Better Housing:
Whether you are renting or buying, having good credit will help you in your goals. As a renter, when you apply for a home, your landlord will likely require a credit check before you can sign a lease. Any black marks on your credit report can cause your rental application to be denied. If you are buying a home, it is very difficult to get approved for a mortgage with bad credit. Even if you are able to qualify for certain types of FHA loans with fair credit, you’ll find that the terms of the loan may not work for your situation.
- You Qualify for Better Job Offers:
It may seem strange when a job application asks to check your credit, but your credit score is a good indication of your reliability. Many employers will want to know your score prior to hiring, and while it won’t be the determining factor in whether you’re hired, it can have an impact.
- You Feel More in Control of your Finances
Having a good credit score means that you pay your bills on time, don’t overspend, keep an eye on your credit report, and in general handle your money like a boss. While a good credit score is just one representation of your brilliant money skills, knowing that you have this part of your financial life under control can help you feel powerful and able to handle anything life throws at you.
