2007-12-10 01:36:18 · 11 answers · asked by Savanna H 1 in Business & Finance ➔ Credit
Several reasons.
To get the best rates when you buy a car, home, auto insurance, apply for a credit card, apply for a job.
The people that advocate paying cash for everything are not living in the real world.
A good credit score/profile is just about required today unless you have unlimited cash.
2007-12-10 02:14:21 · answer #1 · answered by ? 7 · 2⤊ 1⤋
You need good credit score for just about anything you want to buy or lease, if you are not going to pay cash right at the moment of purchase.
This includes, renting an apartment, credit cards, mortgages, car insurance, power utilities.
Even your job may require a credit check, like for management.
The worst your credit, the higher interest rate you will pay, which in the long run, you are paying way more for the item that really isn't worth the value.
Or they may ask for more money up front.
2007-12-10 01:42:17 · answer #2 · answered by Mom of 2 great boys 7 · 0⤊ 0⤋
Your credit is checked by everyone now !
For car insurance rates, loan applications, renting, buying you name it!
If your score is good your interest rate is lower.
If your score is bad everything you do will cost you more.
Your car insurance ( I don't see WHY that has anything to do about it)
Higher interest rates if you do get a loan or maybe a loan with a co-signer.
I see alot of people mentioned cash,,, that's not the answer because you can't be tracked by using cash.
CASH IS NO LONGER KING MY FRIENDS!
I was turned down for a loan because I didn't have a revolving credit.. I pay by cash .I wanted to buy a home and needed a co-signer because I only had 7 open accounts,,, all utilities and auto no credit cards.
The average person has 13 open accounts is what I was told... BIG WHOOP!
2007-12-10 01:49:42 · answer #3 · answered by Teresa 3 · 0⤊ 1⤋
Unless you have stockpiles of cash to purchase everything you need, a good credit score ensures that you get a good interest rate on credit cards and mortgages. The better your credit score is, the less you pay in interest in purchases. Now if you are the type of person who pays their balances in full each month (this helps your credit score), it won't make a difference what the interest rate is.
2007-12-10 01:41:05 · answer #4 · answered by daddy280 3 · 0⤊ 1⤋
you don't. Banks brainwash people into thinking they need credit card and a high I Love debt score to make it in todays world.
The only thing its good for is getting into debt. You have to borrow money and make payments on time to get a high score. You have to keep borrowing and keep making payments on time to keep a high score.
A low score from not paying your bills is trouble. If you have a 0 score from not borrowing money you can still get an apartment and good job and home loan with manual underwriting. It's not a sub prime loan. It's the way it was done before the fico score, You can get the same low interest rates.
If you pay as you go and live on less than you make you will have money. If you have money you dont have to borrow money. If you dont have to borrow money you dont have to worship at the alter of the almighty fico score.
Of course the bankers ( Auto finance managers too) are gonna tell you that you have to borrow and obsess with the I love debt score.
If you dont borrow money they lose.
You win.
No payments = cash in the bank.
Debt free is the way to be!
Check out daveramsey.com and listen to his radio show. He's all about living debt free. It doesnt cost a dime to listen.
2007-12-10 05:15:09 · answer #5 · answered by heybulldog 5 · 0⤊ 1⤋
well for one thing if you planning on owning anything in life you need to have a good credit score. in order to have anything and get good interest rates make sure a have good credit.
2007-12-10 01:42:06 · answer #6 · answered by sista bigbone 4 · 0⤊ 0⤋
to get low interest rates when you finance anything. if youre credit score is bad enough you wont be able to finance anything, that is you wont be able to buy a house, car, or anything
2007-12-10 01:40:20 · answer #7 · answered by justin k 3 · 0⤊ 0⤋
to get things on credit and time like a car, credit card, utilities, mortgage, etc. even landlords check credit ratings now to see if you have a history of paying ur bills on time,
2007-12-10 01:39:09 · answer #8 · answered by donald e 4 · 0⤊ 1⤋
You don't. In fact, bad credit scores prevent you from getting into debt. Consider it a blessing. If you can't pay cash, you don't need it.
2007-12-10 01:42:42 · answer #9 · answered by luckycarmichael 2 · 1⤊ 4⤋
- To buy a car on good terms with a low fixed interest rate rather than having to buy a car at a "buy here - pay here" lot where they would repo your car after one missed payment
- To buy a house with a fixed, low interest rate rather than a variable rate that could balloon out of control...like what is happening now with so many people
- To qualify to live in a decent apt. complex rather than a skanky, run-down complex
- To gain access to better jobs........
2007-12-10 01:42:12 · answer #10 · answered by CatDad 7 · 0⤊ 2⤋