A Good Credit Rating Means More Money in Your Pocket

If it was up to individuals to decide, many people would not take credit for any reason; be it personal or business. While the negative aspects of a debt are mostly felt when the borrower is unable to pay, it is hardly a premeditated scenario. When a financial institution considers a borrower’s credit rating to be good or at least decent, most credit facilities are willing to offer credit facilities. There is so much talk about what is a good credit score, and for most people, strategizing on how to attain it is a daily struggle.

A borrower may feel pressured to repay a credit facility and it may feel like they are denying themselves too much to appear good to the banks but it is all worth it. It might not appear like much of a benefit to oneself, but maintaining a good credit score is good for an individual, at least as far as future financial assistance is concerned. Is it possible to have more just because more effort has been placed to repay a loan, mortgage or credit card debt? The honest answer is YES! A pretty decent credit score is good, but getting a good rating is even better considering the many areas that stand to benefit;

Favorable mortgage rate

Owing to the fact that mortgages are paid over a long period of time, a homeowner gets to spend less money on interest if they pay back to the facility within a shorter duration of time. The interest is paid even lower if the borrower’s credit score is high. According to data made public by MyFico.com, a consumer with an average credit score of 760 or higher would get a mortgage at an interest rate of 3.74%, while another whose score is around 700 got the same facility at 3.96% interest. What is a good credit score? A cheaper mortgage!

Cheaper car loans

A car is a necessity and if there is a way to get it at a lesser value, then getting your credit score is one of them. On average, car loans are given within a vicinity of $26,000 and considering that the average car owner will pay this back within five years, then the interest rates definitely make a difference to the amount of money that is paid back. One can expect to save an average of $598 over the entire period with a good credit score. What is a good credit score if it cannot get you a car at a cheaper cost?

Credit card rewards

Plastic money has been gaining popularity over the last decade and while some people see it as a source of cheap credit, the amount of money spend on the card as interest depends on the average rating of the borrower. The best credit card for good credit offers an annual percentage rate as high as 17% or as low as 13%. The general assumption that lending institutions make is that a borrower with a good rating will clear their debt quickly and the balance at any given time is likely to be low. When marketing their credit card facility as the best credit card for good credit, some lenders will offer 0% interest on credit for the first year to potential customers who have a remarkable rating. This means that people whose credit score is considered poor or average will have to pay an interest rate in the first year of service. Other benefits that the best credit card for good credit owners stands to gain from maintaining good credit scores are free to air miles, loyalty points for using the card and cash back rewards.

Low interest on student loans

Some people are able to finance their own education from savings, sponsorships or even through programs like work-study. These facilities are not always available and the need to get funding from a credit institution may arise when the chance to go back to school presents itself. Loans given to finance education are issued on the basis of credit quality. The higher the credit, the less risky a loan is considered and to factor in this risk, lenders offer corresponding interest rates.

Business financing when needed

Starting a business definitely, costs money and for many entrepreneurs, the only obstacle between them and prosperity is a financial partner who believes in the validity of their business idea. A startup lacks any solid business credit history and lenders find it easier to consider the consumer score in assessing the credit risk. Maintaining a good credit score is therefore not only good for access to financing but qualifying for facilities with low-interest rates.

Save Money With Do-It-Yourself Car Maintenance

Regardless of whether the left headlight blew, the tire has a slow leak, or the brakes uncontrollably squeal, there is nothing worse than feeling the vulnerability of turning to a mechanic or auto repair center to solve your problems. Many times, mechanics sense your desperation and wish to take advantage of it, charging higher prices for a simple job. Then, there are the individuals who believe taking their car to the dealership for repairs will save them money, but they, too, provide an inflated price list.

When car owners take car maintenance into their own hands, the savings are often extremely beneficial. For starters, do-it-yourself car repair allows individuals to compare prices on the tools and car parts needed to complete a job. Many times, auto shops use products that they have bought at wholesale prices, but then increase the cost to customers. When repairing your own car, you will probably be more willing to seek out the deals on spark plugs, lights, and fuses in order to do the job for the least amount of money possible. You may also choose whether or not you want to purchase new or used car parts, which often costs considerably less.

The Top Do-It-Yourself Car Maintenance Jobs

There are numerous car maintenance jobs that drivers often tackle. Demanding only a small amount of supplies. Changing your own oil is a common maintenance activity that is rather easy to get the hang of. To make sure your automobile has an effective fuel system, learning how to change an air filter is also a helpful skill to possess. Sometimes a fuel filter will need replacing and many car owners have learned to complete this job as well.

Spark plugs should be replaced every two years and car owners will save money learning how to do this task on their own. Batteries should also be changed every four to five years. You don’t need a mechanic to handle battery problems. This job is completely easy to master. Additional car maintenance duties to consider includes replacing the disc brake pads, replacing drum brakes, working on the ignition coils, jump-starting a car and change your electric fuel pump.

Finding Resources to Help With Car Maintenance

When it comes to finding assistance with your car maintenance goals, there are plenty of resources that make these sorts of jobs much easier. One of the best places to start with involves a thick booklet you probably stuffed in the glove compartment: the car owner manual that came with your automobile. Depending on how long you have owned your vehicle, you may or may not still possess this publication.

If you have misplaced this booklet or it doesn’t clearly address your problems, you should get hold of a car book that is specific to your vehicle make and model. There are numerous approaches to consider, starting with purchasing one from an auto supply store, such as AutoZone or Pep Boys. Surfing the Internet for car repair websites is also a nice way to get the important details needed to fix a car. Depending on what type of site you visit, you may have to pay a fee to access various information.

To save money, car repair manuals can be taken out with a library card or photocopied from the library. These books are usually thick and heavy, filled with every aspect of car maintenance and repair. One of the most well known of car repair publications is the Chilton series of auto maintenance, which offers do-it-yourself help for cars ranging from Toyota Camrys to Ford Escorts.

When Not to Explore Car Maintenance

Beginner do-it-yourselfers may save a lot of money by learning how to change their own oil and oil filter, fix windshield wipers, and check the fluids. Tire maintenance, spark plugs, installing a car audio system, or even fixing a broken muffler are all reasonable jobs a non-professional can learn how to do. But larger jobs, such as installing a new alternator, some radiator and carburetor work, as well as engine and transmission repair might fall best into the hands of professional car repairers.

Although self-car maintenance is a real money-saver, you don’t want to place yourself in danger when repairing your vehicle. Some jobs require the knowledge of a professional to truly complete, so if repair instructions seem too difficult to grasp, you might have to surrender and pay a visit to the local auto shop.