Great credit can help secure you financing for a venture with no need to even prove you have a job. This is how valuable your good credit report is. It is proof to lenders of your ability and likelihood of repaying debt. It demonstrates your level of financial responsibility that you take with other people’s money. This is why employers even use credit reports to make hiring decisions. A great credit score can get you personal loans with no employment verification. Unsecured personal loans approaching a quarter-million dollars are possible with a credit score over 700.
Can you imagine being able to raise your own money to start that amazing business idea you have? You may not need to have any investors or partners. You can accomplish it yourself with an unsecured personal loan because you have a great credit report. This is why even parents who have made mistakes with credit should instill in their children the skills and reasoning to build strong credit histories. We end up using credit to finance necessary things such as education, housing and transportation. We should not use it to finance things that are not needed. Credit should never exceed your ability to repay it quickly. Did you know that your credit cards should be paid off every month? That is the right way to use them, but who does that?
By learning how to build strong credit from your youth, you establish the ability to get financing for things as an adult. High credit scores show that you can be trusted with other people’s money. This is why your credit report is looked at when you go for a job. Your employer wants to see how you handle other people’s stuff, because you will be handling things your employer owns. Take credit seriously and use it wisely.