Surely, you?re well aware that your credit score is much more than just a number. In fact, many feel that this number controls much of their lives. And it does, but here are several reasons to start focusing on the positives and work towards improving your credit score because, essentially, having a good credit score can make you wealthy.
Here are several ways that your credit score can make you wealthy:
Improving your credit can save you money, big time. Potentially it could save you over $100,000! For example, ?Simply by virtue of having different credit scores, the person with poor credit will pay over $68,000 more than the person with excellent credit.? (Source: MyFico.com) Since the difference in a great score and a poor score can be worth over $100,000, taking a few minutes to check it and working on a plan to improve it, is one of the best and easiest things you can do. Here’s a link to a wide variety of different free sources to check your credit score: Free Credit Reports
2. Special Balance Transfer Offers To Get the Lowest Interest Rates
To reduce interest rates and save money, you can apply for new, lower-interest credit cards that offer attractive balance transfer rate. These offers are typically offered bases on your credit score. You could find very attractive offers that offer a no-cost balance transfer with zero percent interest for the fist six months to one year. In that time, you could save up a considerable amount of money and then return to your normal monthly payment. Plus, you will continue to save money because the new credit card has a lower interest rate. it will cost you less down the road.
3. Organization That Is The Initial Building Block Of Getting Rich
Having good credit is key to a solid infrastructure. Being aware of the savings that are attached to a high credit score is the first step. Then, optimize your credit so that it generates a profitable output. Your credit should work for you and not the other way around. Good credit can make you rich by providing a money saving system that can be sustained for the long term. The money that you save by having good credit is the key to your wealth.
4. Leverage Credit To Generate Wealth
You can invest in profitable opportunities by leveraging credit to generate wealth in investment properties, for one. Investment property provides cash flow that can be used to generate wealth and allows more opportunities to become available to you. You can do research and buy books on buying investment property to find out the best way to get started.
5. Become A Homeowner
Becoming a homeowner increases your credit score, proves that you are a responsible spender, provides a tax write-off, and provides you with an asset that will appreciate over time, which increases your net worth. A bad credit score can mean the difference between of 1% interest or more. The difference of 1% interest rate on a $300,000 home is roughly $62,658 over the course of 30 years; and that only the difference between a 4% and a 5% interest rate. You can do the math yourself using an online?mortgage calculator.
6. Start a Business
This one speaks for itself, but beyond the obvious reasons, there are also many tax write-offs for home-based businesses. Business credit is not achieved without having personal credit. If you are a first time business owner, you will not be able to get financing for a business unless your personal credit score is good and you’re able to borrow funds against it.?If you are a new business owner or are planning to start a business, having a good credit score is essential to starting out your business the right way.
7. Venture Capital
Venture capital is a fund raising technique for companies who are willing to exchange equity in the company in return for money to grow or expand the business. A venture capitalist also wants greater control of a company and a quicker return on their investment.If your credit is not good and your company is not built on a solid foundation, it is less likely that an investor would be willing to invest in your company.
8. Look Favorable When Applying For A Job
Having a bad credit score might not prevent you from getting a job, but there?s a chance that the person with the higher score might get selected over you, sometimes, despite your qualifications. In today?s competitive job market, many employers will check your credit before hiring you. Bad credit is often seen as a lack of responsibility, honesty, or financial management skills. Bad credit can actually even get you completely denied for a job. For example, if you want to work in a bank, having a good credit score with no bankruptcies on your profile, is basically a requirement.
9. Get Approval For Larger Loans and Higher Credit Limits
Credit scores are key when applying for loans and other lines of credit. The higher your credit score the less you pay for a loan and the easier (and faster) it will be to get accepted for a larger amount. This can in turn go full cycle and help you continuously build your business or make it easier for you to invest in property. If you require free credit help, try contacting a reputable credit repair company to assess and potentially tackle inaccurate blemishes on your credit reports before working with a mortgage or real estate broker.
Banks and credit-card companies are giving out record rewards to people with good credit. The best deals usually involve bonus points, which are redeemable for travel, merchandise and even cash. In some cases the points are worth hundreds of dollars. This could be worth anywhere from more cash in your pocket for all your purchases to airline miles and hotel points that can add up to free flights and hotel stays.
You get an automatic extended warranty up to 1 year (that means no more wasting money on extra warranties.) One expert says that, insurers decided there was a correlation between credit score and losses, and that people with higher scores filed fewer claims. That’s possibly because habits from responsible credit use — like paying on time and refraining from taking on too much debt — may carry over to responsible driving and homeownership. Hence, the better rates for better scores.
It?s widely known that people with college educations and degrees make more money than those with only a high school diploma or less. The most common solution for cash-strapped students is to apply for student loans?a reasonable plan, provided you have good credit.
13. Utility Services
If you have good credit, utilities like gas, electric, cable and phone companies may waive hefty deposits and offer better plans. 58 percent of the CFA respondents understood credit scores affect cell phone pricing and service.
In summary, yes, poor credit can cost you extra each month in interest rates and fee and can also make it very difficulty to build wealth. Let?s focus on the positives, though. You can turn it around. You can take care of your credit score and use it to your advantage by saving hundreds of thousands of dollars and enjoy the benefits. Your credit score can make you rich!