Today on the Minute – Is Good Credit Worth Anything?
I got an interesting letter from a listener and I think she just wanted to vent. She talked about how hard she had worked to get good credit but she couldn’t see the real benefit. So if you have good credit and by that I mean a FICO score of 700 or better then you should consider that an asset.
I say that because as the world gets number conscious versus people conscious, having a good credit score can help you because many people believe rightly or wrongly that there is a correlation between your credit score and other parts of your life. So how can it impact your daily life? Here are three important ways:
- Getting a new job. It’s one of the first thing prospective employers check and having poor credit could actually cause you to lose a job.
- Getting a place to live. Whether you goal is to rent or to buy, your credit can make it possible or impossible depending on what it is. And, if you decide to buy and your credit is not so good, if you can make it past the first hurdle and get approved the next hurdle will undoubtedly be the rate which is on a sliding scale with it going higher as your credit score goes lower.
- Getting a car. People with lower credit scores simply pay higher rates.
- Finally, getting insurance for your home or car – yes, your insurance rates are often tied to your credit score. The lower your score, the higher your rates.
So the next time you think that working toward a good credit score is not worth it, consider the ways it can touch your life and that of your family before you chuck it all.
And that’s the minute for today. Still haven’t gone over to www.mymbooks.com and picked up a copy of my new book? Did I mention that it’s free and you can get it in several different formats – Kindle, Nook, iTunes, PDF and there’s also an audio version so you can listen on the go. So hop over to www.mymbooks.com and claim your copy now.
Thanks for listening and as always remember that minding your money really is the path to a richer life!