Sometimes it’s smart to ignore what other people do, and sometimes it’s smart to follow their lead.
When it comes to money, wealthy people have usually figured out how to make it and how to save it. So, there’s often some value in heeding their advice.
Here’s what most wealthy people will tell you about credit:
Strong Credit Gives You Options
Wealthy folks want to be able to take advantage of a financial opportunity when they see one. Often, this means they will want to leverage “other people’s money” rather than using their own money when an opportunity comes their way. Having excellent credit gives you the option of using “other people’s money” when needed. Lenders and creditors will be far more willing to lend you money when you have top tier credit.
Strong Credit Saves You Money
Wealthy people NEVER want to overpay when they don’t need to. When your credit scores are average or low, you end up paying more interest on big ticket items such as a mortgages, car loans, credit cards, and any other time that you want to use “other people’s money”. Even small interest rate increases can result in overpaying thousands or even tens of thousands of dollars over the life of a loan.
Strong Credit Helps You to Avoid Needless Fees
Banks, credit card companies, and any other lender will make money from fees that they charge (annual fees, service fees, application fees, etc…). When you have top tier credit, the lender wants your business SO BAD that they will often waive all of their fees in order to get it. Those fees add up over the years!
Strong Credit Gives You an Advantage in the Marketplace
Let’s say you are looking to rent a condo or purchase a house. A seller, property manager, or landlord will quite often chose a buyer/renter with stronger credit over another applicant with lower scores. Yes, your 680 credit score may be enough to qualify, but it may not be enough to be selected over the applicant with 750 scores.
The bottom line is that low to average scores can cost you a TON of money that you wouldn’t have to pay if your scores were excellent, and in today’s economy, giving yourself a financial advantage is always a wise decision. For a minimal investment over the course of a few months, we can help you keep more of your hard-earned money in your pocket by getting your credit scores into top tier status. Call us today for more information!