ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

8 Reasons Why It Is Important To Have Good Credit

Updated on February 16, 2015

Why is it important to have good credit? There are different factors that are affected by your credit score. Here are 8 reasons why you may want to have good credit and keep it that way.

1. Owning Or Renting If you would like to own a home anytime in the future, mortgage lenders are going to check your credit. If you do not have good credit, you may be refused a mortgage loan. If you are looking to rent a home or apartment, a landlord may refuse you if you have bad credit. It is important to have good credit when you are applying for a big loan, like a mortgage.

2. Buying A Car If you want to buy a car, it may be difficult to get a good interest rate on an auto loan if you do not have good credit. Also, some car dealerships may require you to have someone sign as a cosigner on your auto loan if you have a lower income and bad credit. It may be hard to find someone to cosign your loan. If you have a bad credit history, then the person who you ask to cosign may not trust that you will pay the loan on time.

3. Personal Loans Another reason why you want to have good credit is if you are looking to take out any kind of personal loan from a bank. If you do not have good credit, you may have to pay a higher interest rate on the loan. By having good or excellent credit, you will have more money in the long run by being eligible for lower interest rates. You may not even be approved for a loan if you have less than good credit.

4. Credit Cards With good credit, you will have a much better chance of being approved for a credit card or getting more credit. If you do not have good credit, you may have a hard time getting another credit card. You may be denied by many credit card companies. If you have bad credit and a credit card company approves you for credit, you may have to pay a fee to keep the card. Having good credit will allow you more opportunities to take advantage of special credit card offers such as those that offer lower interest rates or special rewards.

5. Employment In recent years, some employers have been doing credit checks and will only hire a person if they have good credit. If you do not have good credit, you may be denied a position for a job. Keeping good credit would be ideal for those who are in the market searching for employment.

6. Save Money You will save more money if you have good credit. If you have been late paying your bills and loans, you are most likely paying late fees to banks or companies. Mortgage payments that are not paid on time accumulate late fees as well. If you total up all of the late fees that you were charged, you may realize that it is money you could have saved or spent elsewhere, other than paying a fee for a late bill. Also, by having good credit, you will most likely get lower interest rates and therefore you will save more money when taking out a loan.

7. Credit Limit Having good credit may allow you to increase your credit limit on credit cards. If you have a credit card with a low credit limit, you may be able to request an increase for more credit on your card. If you have bad credit, you may be denied for a credit increase or you may not receive offers for credit limit increases.

8. Peace Of Mind Having good credit may give you peace of mind. Drowning in debt and being denied for loans may bring you down and make you feel like you can never catch up paying all your debts. The best thing to do is start working on your credit as much as you can. Establish good credit and you may be able to save more money, be approved for more loans and have a better peace of mind.


Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)