The U.S. is a very credit-based economy. People often need to borrow money for a variety of reasons: buying a home, a car, starting a business or in case of emergencies. Your credit rating is how many businesses gauge your reliability and trustworthiness. You wouldn’t just loan a bunch of money to a complete stranger, right? But if you can be trusted to pay off your credit card bill consistently, companies and banks are more likely to trust you as well.
Using your Deserve® credit card responsibly for everyday purchases is a great way to build a strong credit history. A history that will benefit you in a number of important ways throughout your life. For example, it can help you when:
Renting an Apartment: Landlords will check your credit history. Oftentimes they’ll reject people with poor scores or charge them a higher deposit.
Buying a Home: Solid credit often means you can secure lower mortgage interest rates because the bank trusts you. Over the course of a 20-year mortgage, that adds up to a lot of money you can save!
Buying a Car: Many Americans take out loans when buying a vehicle. Poor credit means you’ll likely have to pay higher interest rates and give them a larger down payment. And nobody wants to do that.
Applying for a Job: More and more employers run a credit check as a measure of how reliable you are. In a tight market, you might miss out on your dream job if you’re credit isn’t good.
Starting Your Own Business: Having a business of your own is truly a part of the American Dream. If you’re looking for a business loan to get started or expand your business, your personal credit history will affect your ability to get a loan. A good credit history might score you a lower interest rate.
Better Insurance Rates: Insurance companies often use your credit rating when they set the rates for things like homeowners insurance, auto insurance and life insurance. A better credit history can help you save money.
The importance of establishing good credit applies to many other companies as well; from saving on cellphone plans to helping refinance student loans. The stronger your credit, the more companies want your business and are willing to give you their best deals. And that’s money you can save to achieve more of your goals.
You can start building that credit history by using your Deserve card for everyday purchases and making sure you pay off your bill every month (Or at least the minimum balance.). You’ll quickly see your credit rating rise and more opportunities open up for you.
Just remember who gave you this advice when you’re rich and famous. 🙂
This article is brought to you by the Deserve. See if they prequalify for a Deserve card with no risk to their credit score at deserve.com.