9 Reasons You Need Good Credit

interest rates

7) Avoid Higher Interest Rates

Having good credit will do wonders for you anytime you need something, especially those pricier items. Everything from buying a mattress, an engagement ring to a car or home is dependent upon credit. And as mentioned before, interest rates will play a factor in a lenders decision to trust you with their money.

Exactly how much will a higher interest rate will really affect you would depend upon what you are trying to buy. For example, if you were to get a car loan for $25,000 with a 3.11% interest rate, you would end up paying $27,026 for the vehicle. A 60-month loan would cost approximately $450 a month. That same loan with bad credit would have a 12.95% interest rate and cost you $34, 091 for the vehicle with a $568 monthly payment.

That’s a big difference for the exact same vehicle.