Using Credit Wisely can Help Your Long-Term Goals

Posted on: September 17, 2014


While most people scream and run from consumer credit debt, the truth is that not all credit is bad. If you’ve got a high balance on a credit card and you’re paying 22% interest on it, that’s bad credit. However, if you’ve got a low-interest education loan that is ultimately going to help you make more money, that’s good credit.


Owning a Home is a Good Credit Purchase


Owning a home is one of the best credit purchases you can make. Home ownership helps you build equity in your future, and stockpile money that you can use later if your needs dictate it. However, home ownership also gives you tax breaks in the present day, and can help improve your credit score for other types of good credit. Home ownership is also one of the best investments you can make from a stability standpoint, too.


Building Good Credit Makes Using Credit Easier


Credit is one of those odd revolving doors. The more responsibly you use your credit, the more likely a bank is going to be to extend it to you. Conversely, if you use your credit too much, banks aren’t going to be willing to give you as much. If you’re clever about your credit spending and establishing a good credit history, you can make this work to your advantage.


Use credit wisely, and you’ll boost your credit score. With a better credit score, you can get a lower interest rate on the good types of credit, like home mortgages. If your credit isn’t stellar right now, you can still buy, and your good mortgage payment history helps to improve your credit. As your score goes up, you’ll become more desirable to a wider array of lenders in the future, and could potentially refinance into a lower interest rate down the road. Using credit wisely definitely yields benefits!


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