The Benefits of Having a Healthy Credit Score

by MSE Staff | Published 18 Aug 2021 (Updated 2 Nov 2021)

Having a healthy credit score is important because it can affect so many things in your life. It determines whether or not you qualify for certain loans, the interest rates you will pay on those loans, and what types of insurance coverage are available to you if any at all.

A credit card is a tool that can be used to increase your net worth over time. When strategically managed, they are an effective way of building long term wealth through increased spending power and use of rewards points for things you would have bought anyway.

If you carry balances from month to month with no intentions of paying off the balance at any point during the duration, then your creditworthiness will be harmed, and future loans may not be granted.

Improving your credit can also make you eligible for a number of different types of rewards programs. Common rewards include cash back, points and miles. With cash back there is the potential to get a percentage of money refunded when purchasing with your card- which could be helpful if you need to leverage all available funds on it at any given time! Points reward give users points that they may then exchange for tangible benefits like plane tickets or hotel stays while Miles Rewards earn discounts on travel costs altogether- making them an excellent option in comparison!

With a little strategy and responsibility, it is possible to strategically grow your net worth by leveraging credit. Think property investments or business investments that will pay you back more than the interest on what was borrowed. This can be similar as saving money in many ways!

Credit cards are often used for convenience, but they do have some drawbacks such as high-interest rates when compared with other forms of borrowing like mortgages and car loans which may come at better terms if you're seeking cash rather than using them to build up assets over time - think property investments or investing in businesses whose returns exceed even ongoing expenses like monthly interest charges from a card balance

If you’ve ever taken advantage of 0% interest introductory offers to pay off your principal balance, then it's not surprising that this is a great strategy. These deals are one way credit can help us save money over time as we reduce the cost of borrowing money with these types of opportunities.

Credit cards can be a tool to help you build long term wealth if used strategically. They are an effective way of increasing your net worth over time through increased spending power and the use of rewards points for things you would have bought anyway. If this sounds like something that might work for you, check out Curtis’ free e-book “Money That Grows”! It’s full of solid advice on growing net worth.