Once you’ve gone through the process of buying a house, your mind is probably going to be buzzing with excitement about all the potential your property has, however, don’t forget: Closing on your home isn’t the end of it—once you’ve finished your purchase, you also need to keep an eye on your credit. Today I’ll share seven reasons why you need to keep a good credit score after you buy a house.
1. To furnish your new home. Now that you have this awesome new home, it needs to be furnished. Try going to different furniture stores and opening up a store card. They can help you save money and spread out large expenses over a long period. However, some of these cards come with pitfalls—read into them before taking one out.
2. To save money. Typically, the best credit cards are reserved for people with the best credit. If you let your credit dip, it will be much harder to qualify for some of the better cards with lower interest rates.
3. For the miles. Credit cards that offer miles or cash back aren’t for everyone; they require you to have a decent credit score to apply and receive them. If you keep your credit score high enough, you’ll be able to apply for these cards and take advantage of the miles you rack up or get cash back on your daily expenses.
4. To find a new job. Many employers are running people’s credit during the hiring process. Allowing your credit to drop could lead to you having a harder time finding a new job.
5. To take advantage of low rates. Interest rates are at record lows right now, and many aren’t able to take advantage of these low rates because their credit scores are too low.
6. To stay in your current home. Credit card default won’t necessarily get you kicked out of your home, but if your credit problems go so far that they affect your ability to pay your mortgage, that will impact your ability to stay in your home and could end with your house getting foreclosed.
7. To buy another home. Investment properties are one of the best ways to build wealth; more millionaires are made through real estate than any other investment strategy.
If you’ve already purchased a home, you know that your credit score does affect your monthly payments. A higher score means that you can get lower interest rates and a lower payment. According to FICO, a homebuyer with a credit score of 760 or higher can pay nearly $2,500 less per year on a home worth $210,000.
If you’re having trouble with your credit score, give me a call and I can set you up with a credit repair company that I use all the time. I’ve seen them do some amazing things with people’s low credit scores in just a matter of months. Otherwise, don’t hesitate to reach out to me with any questions you may have.