Credit does a lot more in your life than you may think. You may think that having a credit card is just something you do to have an emergency backup (which is better than thinking it’s just some free cash). Your credit determines your place in life, in some respects.
People with no credit at all may find themselves in the same boat as people with bad credit, at times. It can be hard to get a loan to buy a home, and it can be nearly impossible to get your hands on a credit card that doesn’t have insane interest rates. However, those with bad credit have a much longer way to go to fix things and repair their credit.
Having Credit To Get Credit
OK, so having money available on a credit card, or through a loan, isn’t really “making” more money, but it does give you a cushion to do the things, and buy the things, you need in your life. If you have good credit, or excellent credit for that matter, get a loan should be a breeze.
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When it comes to loans and credit cards it pays to get them paid off quickly. This looks great on your credit score, and report, and it also gives you the option to increase the limits on your credit cards. Good credit, in general, can get you more credit.
You Can Get A Better Job
Jobs do credit checks on people often, and what shows up on yours could affect whether you get the job or not. It could also affect you moving forward in the job you have. You may be up for management, but a look at your credit report could keep you in peon status if your credit is atrocious.
If you want a good job that pays well and has the potential for ladder climbing, get your credit in order now. Sure, you can still get a job with less than stellar credit, but will it be the job you want? Will it be a job that gives you responsibility and control?
It’s Easier To Go Into Business For Yourself
If you have been considering starting your own business it would be wise to take a look at your credit standings first. Your personal credit could have a big effect on your business when it comes to entrepreneurship. And, vice versa, if your business goes under you also want to keep that separate from your personal credit.
When you first get your business started you will need loans, and they will be in your name, so you want to get them with a good credit base. If your credit is bad you’re not going to be turning it around overnight, so expect to face a few trials as you work on launching your new business.