Building good credit can take a significant amount of time and discipline, as it results from a history of creditworthy behavior. By paying attention to your credit now and establishing a strong credit history, you will most likely be rewarded later through low interest rates and financial savings. A 2010 report from the Annie E. Casey Foundation stated that an average borrower with a good credit history could save up to $250,000 in interest and other expenses throughout their lifetime.
As you begin to establish credit or work to improve your credit score, be sure to keep these three points in mind that are explained in “
Three Reasons You Need a Good Credit Score,” a post written by the experts at the Equifax Finance Blog.
- Establishing a strong credit history and a high score can save you a significant amount of money if you ever need a loan, such as a car loan or mortgage loan. Your score and history are significant factors in whether or not a lender will deem you a creditworthy borrower, meaning you may be charged a higher interest rate or be denied altogether.
- Having a strong credit history can save you money on insurance, whether it is for your car, your home or both. Many insurance companies use a credit-based insurance score to determine whether or not you will be approved for coverage, and it can determine the cost of your premiums.
- Many basic utility companies, such as your power, cable or telephone providers, check your credit score before agreeing to provide service. If your credit score is not high enough, the providers can ask for a significant deposit or a guarantee that someone will be responsible for your bill on your behalf.
To learn more about personal credit, and how to strengthen your credit history or score, visit the Equifax Finance Blog.