The Key to Financial Freedom: Is It Really Good Credit?
- Naomi Quinten
- 0 comment
- May 25, 2022
There is a lot of conflicting information out there regarding the financial freedom achieved by achieving good credit. Some sources claim that having good credit can help you achieve financial freedom faster, while others scoff at the notion of trusting credit agencies with your money and suggest avoiding them at all costs. But what does good credit have to do with financial freedom? Well, let’s take a look.
What is Financial Freedom?
Financial freedom is the goal of earning enough income that you don’t need to rely on any external sources, like credit, to pay your bills.
The goal of achieving financial freedom is to become independent from outside creditors, enabling you to live debt-free.
Financial freedom is a confusing term. On the one hand, it means not having to work a traditional job to pay your bills. Rather, it means earning enough money through passive income that you can live without having to work at all. Or depending on someone’s perspectives, it can be making money through trading using the best platforms by performing traders with edge comparison.
Most people don’t achieve financial freedom in their lifetime. However, some people do. After all, it largely depends on your tenacity and commitment to make everything work your way.
How Good Credit Helps You Achieve Financial Freedom Faster?
There are many reasons why good credit can help you achieve financial freedom faster. The most obvious is that it enables you to borrow money at better rates and terms.
People with good credit often have access to lower interest rates and better terms, such as longer repayment periods, than people with poor credit, who are often charged higher rates to compensate lenders for their perceived risk of default.
Other Ways Good Credit Helps You Achieve Financial Freedom Faster
There are a few other ways good credit can help you achieve financial freedom faster. One is that it can help you save money on insurance premiums. Some insurance companies use a person’s credit history to determine the cost of their policies, including car insurance and homeowners insurance.
If your credit is good, you may be able to get cheaper rates on your insurance policies, saving you money over the course of your lifetime.
Good credit can also help you open a business. Many banks require business owners to have a high credit score, along with a healthy amount of equity, to get a business loan.
