Having a credit score allows creditors to assess your financial stability and determine how much credit to give you. Therefore, it is important that consumers build credit to establish a strong credit score.
Lower Payments
A consumer with a good credit score will have to make lower monthly payments to creditors, according to the Federal Trade Commission. Without a credit history, credit card companies will expect consumers to make high payments every month because they pose a risk.
More Credit
Having a credit score opens you up to more opportunities to build credit. If you want to buy a house or a car, the mortgage lender or car company can assess your credit score to determine how much of a loan to give. Without credit, the company might turn you down.
Responsibility
Building good credit shows that you are a responsible consumer. If you're applying for a job, the company might check your credit score. Having a record of credit illustrates responsibility to the company, which can help you land the job. A lack of credit can be a warning sign for a company considering you for a position.
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