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Credit Enhances Our Lives

But what is more of a hassle than dealing with a credit card bill? Surprisingly, we can name five off the top of our heads. Here are five reasons why you should embrace credit, not avoid it:

1. You want to rent an apartment or home.

Not ready to buy a home? If you have chosen to separate yourself from credit and have little to no credit, your options are limited. Realistically, your only option will be renting, and even then it could be difficult.

Many landlords check credit reports before renting to make sure the tenant is financially responsible. If you do not have much of a credit score, you may be required to put down a large deposit, find more roommates, or even convince someone to cosign for you.

2. You’re in a bad situation.

Lose your job? Have a hefty medical bill? Suffering from car repairs? Strong credit could help you get a home equity line of credit, or even put the bill on a credit card if absolutely necessary.

Depending on your situation, it is possible that whoever you owe will work with you, but why risk it?

3. You want to travel.

Although we don’t recommend putting lavish vacations and getaways on a credit card, it is necessary that you have a credit card in order to book a hotel reservation, flight, or even rent a car.

Don’t prevent yourself from enjoying what life has to offer, within your financial means, of course.

4. You need a job.

Many employers consider you a candidate for a position when they verify you have a history of taking care of your responsibilities. This is where credit reports come into play. Sure, you may pay everything on time with cash, but if you have no credit to prove it, you may be overlooked.

5. You want to work for yourself.

Unless you were born into a family that is loaded with cash, it will be extremely hard to leave a job to start your own business if you don’t have credit. Strong credit allows you to pay less to access money and leaves more disposable income to invest.

Sure, if you treat a credit card like unlimited money, you’re going to run into some problems. Rather than charging everything in sight, use credit as an asset and a wealth building tool.


Posted: 6/28/2013 with 0 comments

Categories: Credit



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