You worked so hard to ensure that your credit score was good enough to get you into your Lake Havasu home. Now that it’s yours, you can relax a little. So what if you let a payment lapse by a few days. Going deeper into debt to furnish your home can’t hurt you now, right? Not true. Your credit score still matters after you buy a house. It affects so many different aspects of your life. Keep it in good shape to reap the rewards still to come.
Why Your Credit Score Still Matters After Homeownership
As I stated above, now that you moved in, you want new furniture. That costs big bucks. Many stores offer interest-free or “same as cash” incentives to help you spread your costs out over a longer period of time. With these, you pay no interest for a specified amount of time (12, 18, 24 months, etc). They charge you a minimum payment each month. But, when that time period runs out, you discover that all of your interest from the initial purchase to date suddenly appears on your account. If you can’t pay off the balance in the terms stated, you may want to simply set aside money each month until you save up enough to pay for your purchase in cash. That keeps your credit score safe.
Credit card companies fall all over themselves to offer up great rates (including 0% interest cards) as well as perks for anyone with an excellent credit score. “Cash back” and “miles” rewards can be used for other purchases or travel deals. But you must maintain a great credit score in order for credit card companies to find you appealing enough for this perk.
Yes, believe it or not, many employers now perform a credit check as part of the hiring process. A poor credit score not only reflects badly on you as a potential employee but it could also cost you a job. Keep that score up!
I know what you’re thinking. “Refinancing? But, Lori, I just moved in! Why should I worry about refinancing now?” Well, you never know where rates are headed. They constantly fluctuate. If they fall by a percentage point or more in the next year or two, you might want to refinance. A good credit score allows you to take advantage of the best rates. On the other hand, a lower score could hurt your chances of refinancing.
Buying a New Home
Again, you just moved in. Why worry about another Lake Havasu home already? Life happens. What if you need a bigger home to allow you to take care of your elderly parents? Or how about if you find yourself expecting a new bundle of joy…or three? Maybe you find yourself in a position to take on an investment property. You may be in the market for a new house before you know it. Good credit makes that a little easier.
Just because you moved into a new Havasu home doesn’t mean you should neglect your credit. Continue to spend your money wisely and use credit responsibly. It can only be advantageous to you to do so.