What can good credit get you? You may be able to save thousands on your mortgage, auto loan, credit card rates and auto insurance. You’ll have more money in your pocket, which you then could use for investments or savings to make even more money.
What harm does bad credit do? It costs you in the form of higher borrowing rates, may keep you from buying the house or car you want, and may even keep you from getting the job you want.
“Having good credit is really about access,” said Lauren Bringle Jackson, an accredited financial counselor and content manager at Self.inc. “The better your credit, the more options you have when it comes to getting credit cards, loans, etc. You can shop around and choose what works best for you, rather than just taking whatever you can get.
“Bad credit limits your options, and usually costs you more money because you get charged higher interest rates or have to make bigger down payments to cover the risk your bad credit poses to lenders.”
Changing bad credit, boosting average credit and maintaining good credit are the absolute most important things you can do for your financial health.