If cash is KING, what does good credit really mean? To answer this question, it means approximately one-quarter of a million dollars. Yes, $250,000; this is the average amount of interest an individual with fair or poor credit will spend on interest expense of their lifetime as compared to the individual with good or excellent credit.
Good credit has many benefits, and excellent credit has even more. Great credit allows you to finance purchases and expenses at much lower interest rates, resulting in a significant amount of interest savings. Quality credit scores allow an individual to qualify more easily for financing and obtain a better approval rate for loans and other types of credit. Higher credit scores may qualify individuals for careers in economics, finance, and money management. Jumbo loans and credit cards with much higher limits are also available to individuals with impeccable credit. Reward credit cards are often sent on an invitational basis to people with good credit. Higher credit scores also allow individuals to obtain better insurance premiums and rates.
Individuals with higher credit scores are better positioned to obtain investment and rental properties. These real estate investments may contribute to the person’s overall net worth. People with great credit scores are able to maintain more cash reserves and capital on hand as they are not required to make security deposits for utilities and other financial transactions which may require a deposit from most. Superior credit ratings allow an individual to have negotiating power with creditors and lenders. These individuals are well positioned to command terms that are more favorable to them as a consumer.
To schedule a consultation with Nicole Michelle, feel free to connect with her on the Home Page.
Nicole Michelle
Finance and Money Wiz
December 31, 2021
Комментарии