Benefits and Consequences of Your Credit History

Your credit history has a very real impact on your life, either good or bad…one that goes beyond loans or banking. Don’t dismiss the importance of maintaining good credit. If you do, you might find yourself in a sticky situation.


How Credit Affects Your Loans

A good credit history comes with many perks. Many people already know it affects loan decisions by increasing your odds of qualifying, lowering your interest rates and giving you more flexible terms. Every dollar counts, so this benefit alone is a great reason to watch your credit.

Neglecting your credit history simply makes loans less affordable for you and your family. You have reduced access to money when you need it, and it’s easier to get stuck in a rut.


How Credit Affects Your Lifestyle

A good credit history also affects your job, housing and emotions. Some employers review credit scores and people with excellent credit stand out as displaying responsibility. With more affordable mortgages, these people also have the leverage to live in better areas. Both of these factors (along with loan approvals) lead to greater emotional health and happiness.

Meanwhile, a poor credit history hurts your job search or home search. Candidates with better credit edge you out during the application process. You may end up in a less desireable neighborhood because of more limitations. Lifestyle choices are more challenging, causing frustration and worse emotional health.


There Is Always Hope 

If you find yourself experiencing more of credit’s consequences than its benefits, don’t lose hope! Work hard to improve your credit history and access the benefits down the line. A good start is paying all bills on time and limiting credit use to below 30% of your available credit.


Kelly Community also offers help with its credit builder loans. Start building a better credit history and get the life benefits you want.


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