Freedom Through Good Credit

It seems to be true in every part of life that responsibility, hard work and good decisions pay off . Anyone who's done something amazing will tell you that they couldn't have done it without a lot of hard work, perseverance and patience. Having good credit is no different. If you handle your credit responsibly, the rewards can be huge. It's no secret that in order to make large purchases with credit, you need to have a good credit score. Without it, you are not going to be able to obtain the financing required to make a large purchase. If you want to buy a house or a car or a boat or a lake house or anything of that nature, you'll need to have good credit. Unless you're in that small percentage of people in the world who buy private islands with briefcases full of cash, you'll need to take out a loan on large purchases. You'll probably need a mortgage to pay for your house, and you'll probably need a loan from a bank or dealership to buy a car.

Risky Business

From a loan officer's perspective, they know that giving a loan to anybody is a risk. They understand that there's always a chance they will not recoup the money they loan out. When they check your credit score, they are deciding how high of a risk you are. People who have great credit histories don't pose much risk to a loan officer. They can see that these people have been consistently reliable in the past, and they assume that this pattern of reliability will continue into the future. It's not just good for houses, though. Having good credit can help you in times of emergency as well. You never know when something will pop up that requires you to spend lots of money all at once. You could need emergency surgery, there could be a natural disaster that wipes out all of your belongings, or a loved one could need to be hospitalized or housed in a nursing home. These unexpected instances can be made much easier if you have good credit. That surgery might not be covered by your health insurance (or maybe you don't have health insurance), and if you can't afford to pay these expenses out-of-pocket, you'll need a loan to deal with the situation.

Employment

Having good credit can also help you to get a job. Some employers require a credit check before they will hire you. Having good credit is an indicator that you are a reliable, responsible person and that an employer can count on you to do what you say you will do. It's been said that America runs on credit, and if you look around you, you will see that there is truth in that statement. Pursuit of the American dream all but requires credit. If you make decisions wisely, and spend your money responsibly, you can make a lot of things happen for yourself that you could not have made happen any other way. The road to financial freedom is paved with plastic.