Most teenagers head off to college without knowing a thing about credit. People often find themselves just getting through it in their early 40’s if not later. The good thing about credit is that you can improve it and you can start at any time. However, bad credit will not improve overnight and in the meantime you can be setting yourself up for a world of problems.
In this article you will find nine reasons why you need good credit. This list is not only things that make life more fun, or a bit easier, but some of them are crucial to living life without constant problems.
1) Buy a Car
Buying a car is not impossible with poor credit, although poor credit can make it much more difficult, and expensive. Most people require a lender to buy a car. The first thing that lender will do is look at your credit score, and how you manage your credit. The lender wants to know that you will be able to pay back your loan.
Many people think that if you don’t pay back your loan the lender will simply take the car, and sell it, making money anyway. However, it doesn’t work that way. And if that is the way you think, then you might already have bad credit. That is exactly how the lender will think as they review your credit usage. To offset someone with poor credit, a lender may accept your application and give you a loan, however you may have to pay an abysmal interest rate, and be caught in a loan that is not worth the value of the vehicle.
Of course the other option is being turned down entirely for a car loan, which is becoming much more common.