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Your Good Credit Can Put $1000s In Your Pocket Each Year
Do you remember when you were at school?
Sweets were all the favor of the teachers, they were talked about all the time and mentioned as an example until they were red in the face. No one talked about the bad or the mediocre. They were cast aside as trash.
Well, something similar happens in real life, you know? Maybe not as “dramatic”, but as painful for the soul as for the material. Our credit ratings tell everyone else how good or bad we are, how reliable and trustworthy we are. And this, I hate to say it, is in the public domain! Everyone in the whole wicked country knows who we paid and who we didn’t.
Hey, let’s play the good guy for a change
Now let’s see what it’s like to be on the good side of the border. No one will talk about you if you have good credit… you don’t have to. It stands out like a sore thumb, that’s why! As soon as you walk into a bank or lender to apply for a loan or line of credit, you start to notice the difference. Your credit report puts a smile on the loan officer’s face.
A typical case
You need a loan, say $20,000 for a car. Knowing your credit rating, you’ll definitely want to take advantage of it, right? Hence, it will make it difficult for the loan officer to convince you and on the other hand, you will feel confident to negotiate from a better point of view. If you don’t get what you want, go to another lender and continue until you get at least 2 interest points below the first offer.
Do the math
You start to figure out how much you’re saving and, well, $400 isn’t a bad sum, right? Now, let’s change the example and suppose you want a mortgage loan to be transferred to a new home. The house costs, say, $300,000 just to be on the conservative side. We will repeat the process but this time we will put more realistic numbers.
The normal rate for good credit would be something like 5% to 6%, but let’s be conservative, and say 6%. For bad credit, rates are around 7% to 8%, so that leaves a difference of 1%. And I’m generous on both sides. In real life, on average, the difference could be more than 2 to 2.5 percent. I just want to show you that the difference of 1% on your loan is… $3,000 per year. Do you understand my point?
And what about all the other interest you pay?
Get credit cards with lower interest rates, special offers that you only have access to if you have good credit, consumer credit, car loans… and all because your credit rating is good. Do you have any idea how you could save on all of this if you had good credit? So, if your credit isn’t perfect, you better start repairing it now. It’s still early in the year and you might as well start taking advantage of it right away!
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