Credit

Good credit can be an elixir for an individual, providing benefits for great credit and freedom to spend more on their lifestyle. Bad credit, on the other hand, seems to further punish you simply for having bad credit. The pattern becomes self-enforcing: with good credit, it is easier to earn more and make payments thus making it easier to keep good credit. With bad credit, however, you have less flexibility to make mistakes and the mistakes are punished much more harshly. It seems like it is hard to break that cycle. There is a lot of misinformation around credit and RewardBus is looking to clear the waves on a lot of it. RewardBus writers are composed of finance industry professionals who have a history in credit and can give inside information to how lenders and customers make choices: both good and bad.

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There's No Universal Definition of Good Credit

There are rules of thumb that help improve your credit. Make your payments on time. Let your accounts age for longer credit history. Avoid carrying too high a balance on your cards. Get a diversity of credit type: mortgage, auto, credit card. There is, however, no universal definition of good credit. Each lender sets their own policy on what they will and will not approve and it is impossible to see into the crystal ball and determine exactly whether you will be approved or not. Any site claiming otherwise is lying (you can be "pre-approved" which just means you have a very, very high likelihood of approval but it is not 100%)

There are so many variables to consider: some banks might care about income more than others. Some might care about how large your credit limit is. Others may care mostly about delinquency behavior. And, even others might care only about your behavior with them (if you have another product with them, for example). Some are more lenient to long-time customers. Others are more harsh (because it increases the severity of a chargeoff for them!). It may feel like you should just get up and walk away. Don't. Know that having good credit means somewhere will want to get your business and, like dating, it may take a while to find a product that fits. 

Credit Can Be Very Helpful

Credit is useful in any facets of life. Some of the best cards offer cashback or other benefits for using the cards. If you want to make a purchase and don't yet have the cash, credit offers a way to get it today without saving the cash (although you will need to pay it back with interest later). Credit is also useful when hunting for apartments (many landlords check credit) and jobs (as well employers). Focus on maintaining good credit using the tips found on RewardBus and you may find that you are getting more and more benefits from your improving credit.

What are you waiting for?