You shouldn’t neglect your credit score because…
Your credit score is a funny old thing, isn’t it? It’s something that a lot of people probably don’t give all that much thought to until they find themselves in a position where they suddenly need to have a good one. For instance you might not really plan to borrow any money as you are trying to stay out of debt and as a result you might feel that your credit score isn’t all that important to you. There are some situations that you may be unexpectedly thrown into in life however where you might wish you had given your credit score a little more respect over the years. Here are a few:
Your landlord sells your house
Let’s say you are renting a property and have been for several years. You feel pretty secure in your surroundings and feel that you will be in the same property for some years to come. Then one day you get a phone call from your landlord explaining that he needs to sell your property due to unforeseen circumstances and you have a month to move out, ahhhh!!
In a situation like this you will be glad to have maintained a good credit score so that you can quickly find another property without your credit history acting as a barrier.
An unexpected family addition
Again you might be in a situation where you have been settled in a house for years – owned or rented – and you have no intentions of moving. One day however you are hit with the unexpected revelation of a new arrival to the family in less than 9 months time and you realise that space is going to be a real issue. In this situation you might need to increase your mortgage or rent a larger property and a good credit score is only going to help you to achieve this.
You need a new car fast!
Sticking with the theme of a new family addition you might suddenly be faced with the need to buy a new, more suitable family vehicle. If you have an emergency fund then perhaps you can use that but what if you don’t have any available funds? Well again you might just find that a good credit score can help you to get a low rate of interest to finance a vehicle.
The other thing that could happen is that your vehicle might break down completely leaving you totally stuck and again you might be happy to know that car finance is at least an option however you feel about the principle of borrowing money to buy a car.
It’s good to expect the unexpected
I’m sure you can think of many more examples where making sure you have a good credit score or a sizeable emergency fund could help you out a lot. I suppose the point of this post is that however comfortable you feel in your current life situation it always pays to expect the unexpected. Two ways in which you can do this are to maintain a good credit score and to build up a reasonable emergency fund.
Can you think of other unexpected situations where having a good credit score could really help you out?