Why Maintaining a Good Credit Score Can Help Build Wealth
Written by Tegan Holloway
According to data from Biz Women’s article on financial news, women’s financial health is at its lowest in five years. Their data also reveals that the majority of women don’t feel in control of their money.
So, at a time when building wealth is both a source of stress and a solid way to attain more independence and quality of life, the simplest and most effective action women can take is to maintain a good credit score. With good credit, you gain plenty of benefits that enable you to take control and work toward true financial wellness.
Good Credit Helps Control Debt
Most people only think about how paying off debts helps improve your credit score, but the opposite also rings true. When you build good credit, you’ll have an easier job managing both new and existing debts. Creating a sustainable system that increasingly lowers your debt will be essential in building wealth. After all, the goal is to have more money left behind for savings, profitable investments, and personal interests.
Our guide on ‘How to Get Out of Debt’ goes into learning your triggers and slowly approaching your debts before cashing off. You’ll find that good credit increases your approval rate and helps you pay less every time you get a loan. It saves money, and more importantly, makes the whole thing less daunting to maintain.
With good credit, you gain plenty of benefits that enable you to take control and work toward true financial wellness.
Good Credit Enables You to Seize More Financial Opportunities
One of the best things you can do for yourself is to invest in projects that can feasibly build wealth. When you maintain a good credit score, you can actually jump in on these potential investments because you have access to approval and you can afford to take credit inquiries.
Upgraded Points’ article on the differences between hard and soft credit checks notes that hard credit checks will affect your credit score. It also mentions that this is the type of inquiry you’ll come across when dealing with lenders, landlords, and credit card companies. So, every time they do a hard credit check, you lose a few points. If you have a good score, this shouldn’t hurt your standing as long as you don’t take on too many at once.
Aside from investment opportunities, you may also have a better chance of getting promising job offers and career improvement. Plenty of high-prospect employers do soft credit checks on their potential hires, using the results as a basis for their screening. In this case, your credit score and financial habits will speak for themselves.
Good Credit Means Lower Interest and More Options
Getting a lower interest rate is, pun intended, in your best interest. Whenever you need to take on debt or make a large purchase, you need to think about interest and the options that will suit you best.
In this case, you can actually bank on women’s intuition. According to CNBC’s article on empowered investment, statistics show that women actually outperform men on average when it comes to getting rates of return on their investments. The common issue women face is actually just self-doubt.
With the right steps, ample research, and good credit, you can easily build your wealth and have more options at your doorstep. You don’t want to limit yourself on what you can invest money and time in, as well as the markets you can dip into. Enable yourself to grow and build your finances by maintaining credit and keeping those options open.
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