It’s true that your credit score serves as an asset. However, this depends on where you stand. We like to look at it this way: while good credit can be an asset, bad credit can be a liability. Why is that? If your credit is good, you’re going to receive the best deals and consideration across the board. If you have bad credit, you are going to get screwed each and every time.
It may sound illogical, but the more you seem to be in financial trouble, the more junk fees you get stuck with paying. If you have a 520 credit score, you’re going to be dealing with high interest rates on your credit card, loans, etc. You also get the worst rates in insurance and loans. Some employers even check your credit when hiring. We’re clueless about what credit reveals about work ethics, skill, and morality. Thus, you should never be complacent about your credit if it is bad.
The negative perception of bad credit is bad enough. What’s worse is that those with bad credit are screwed royally. They get taken for even more money, despite the apparent fact that they’re battling debt. It’s an unfair system, but the moral of the story is that you must beat the system. Keep your credit good. Otherwise, you’ll be screwed over and over and over and over again…and over.
For tips on raising your score above 740, check out Liz Pulliam Weston’s great article on MSN Money Central.
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