Three Reasons Why Good Credit History is Important in a Failing Economy

Posted by Kaylie Phelps on July 13th, 2017 FacebooktwitterpinterestFacebooktwitterpinterest

The greater flexibility and enhanced purchasing power that good credit may provide can be an essential asset, especially during a down market or periods of economic difficulty. The numerous consequences of bad credit and past financial mistakes is not a concern that should be taking lightly. Having a poor credit history can make life difficult in ways that many individuals fail to consider. The following three reasons serve to highlight the importance of building and maintaining a good credit history.

One: Minimizing Potential Problems Through Increased Purchasing Power

Lacking the financial resources needed to ensure prompt action may be taken in order to resolve future problems and issues can lead to no end of complications. Those whose purchasing power may be limited to only the costs they can afford to pay out of pocket can find themselves in a very difficult situation when it comes to:

  • Automotive repairs
  • Medical costs
  •  Household maintenance and upkeep

Good credit means enhanced purchasing power and the greater flexibility that may be required to deal with any problems that may be lurking just over the horizon.

Two: Addressing Small Problems Before They Grow Larger in Scope

Failing to ensure a prompt and effective solution to a problem often allows minor issues to grow into fa more serious and potentially costly concerns. While the interest rates and future costs associated with a credit account may seem like an avoidable expense, being unable to address, resolve or even stabilize a potential problem may often be far more costly in the long run. The means to minimize the scope and extent of a situation or issue is never a resource that should be discounted.

Three: Taking Advantage of Time-Sensitive Opportunities

From lucrative investment opportunities to situations that may allow for more cost-effective purchases to be made, being able to capitalize on circumstances or situations that may be time-sensitive in nature can often be an important concern. Even the most unfavorable markets may still hold plenty of opportunities for those who know where to look. Ensuring that access to the financial resources that may be required to pursue a potential opportunity or future prospect may be arranged with greater ease serves to minimize or even eliminate many complications that might arise.

Improving Credit History and Creating a Financial Plan for the Future

From the guidance and education needed to assess current financial concerns with greater accuracy to debt-consolidation loans and credit counseling services, there are plenty of resources that can be made available to those who are interested in improving their credit score. Taking steps to rectify past financial mistakes and creating a plan for the future can make a world of difference in the days ahead. Good credit may prove to be an essential asset, one that can provide the greater flexibility and expanded range of options and solutions that can provide superior comfort, greater security and the means to ensure that surviving during a bear market or failing economy may be done with greater ease and success.

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    Welcome! I'm Mrs. Money and I lead a frugal, simple, and debt free life on a modest income. I make money online to help support our family. I believe in saving money, living green, and enjoying life!

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