5 Ways Life is Better with Good Credit

Ah, credit. Can’t live with it, and you can’t live without it. Well, technically you can, but most people don’t! Credit is something that follows you the rest of your life, whether you use it or not. We are all reported on our credit, credit history, and credit worthiness. Because of this, having good credit can make a huge difference. I’m sharing 5 ways life is better with good credit.

Why Credit is Important

Before I get into why having good credit is better than having bad credit, let’s talk about why credit is important. Ultimately, credit is important because it allows you to borrow money to make purchases (big or small). Most people can’t afford to flat out by a car or a house, so credit will help them make the purchase.

When you have good credit, the cost of borrowing can be a lot cheaper than if you have bad credit. Almost anyone can borrow, but it can come with a very expensive price. Payday loans, for example, are some of the most expensive forms of borrowing. If you have good credit, you probably would never need a payday loan.

5 Ways Life is Better with Good Credit

Great promotional offers

When you have good credit, you may notice more and more promotional offers come your way. Some of these offers may come with great terms. Never take credit out if you don’t need to, but if you have good credit and need to make a large purchase, taking advantage of a great promotional offer can be a great way to save on interest and make the purchase.

Promotional offers come in all shapes and sizes. Whether you have no interest on balance transfers for a specific amount of time, or no interest on purchases for a specific amount of time, promotions are offered to those who have good credit. The lender believes you’re creditworthy and wants to reward you for borrowing with them.

Lower interest rates = more money in your pocket

Another benefit to having good credit is that you get to save more money when you do borrow. For example, if you have a low credit score when applying for a home, you’ll likely have a higher interest rate. If you have a good credit score, you’ll likely have a lower interest rate. The lower interest rate means you pay less over time. That can lead to big savings when it comes to a big purchase.

Lower interest rates can also come on car loans, personal loans, and credit cards – but only if your credit is up to par. Lenders use your credit score to see how responsible you are with credit. The lower the score, the less responsible. That can translate into higher interest rates. That means higher costs for just for borrowing money.

If you need to finance, you can do so (declines suck)
Imagine needing credit and not being able to get it. When you have good credit, you can borrow money easier and cheaper than if you don’t have good credit. There’s nothing like applying for a loan or credit card and being declined because your credit is bad. When you actually need credit, having a good credit score enables you to get what you need.

You know how to work the system to your benefit

Life is better with good credit because you now get to work the system! You get to use credit the way it’s supposed to be used – to help you save money. Most credit cards come with some form of rewards. Be it cash back, points, or discounts, you get perks for using credit.

When you have good credit, you can pay your balances in full, which results in extra savings on things you were already going to buy. This is exactly how you work the system to your benefit. I love doing this because I save so much on travel, get statement credits, and use points for gifts!

You take pride in your progress

Lastly, and maybe most importantly, life is better with good credit because you can take pride in your progress. For the first time in my life, my credit score is in the 800s, and that makes me feel wonderful!

I take pride in my score now because I worked so hard to get here. I was in debt for years, but took the time to budget, save and focus solely on paying off debts. I made sacrifices and put in the time. Now, I get to take pride in the results!

Remember, Cash is King

While life is better with good credit, always remember that cash is king. Even working the system to save money by using credit cards can catch up to you, if you let it. Cash will never fail you and never allow you to spend more than you have.

If you struggle with controlling your spending, don’t worry about using credit for the perks. Use cash only and get yourself to a place where you are comfortable with your spending. Then, you can start using credit for your benefit.

Related: How to Build Good Credit in 6 Simple Steps


Having good credit can definitely be a game changer! If your credit isn’t where you want it to be, keep working at it and give it time. As long as you pay it off, you will see your credit improve. Do you have any tips to share for improving credit? What are your experiences with good or bad credit? Post a comment below to share.

The CGS Team



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