Good credit saves you money
Posted on: 14 November 2015
In our last post, we talked about why you want lenders to conduct credit checks. This time we’ll look at how good credit can save you money.
At Fig, we’re a little confused why a class on credit isn’t mandatory for everyone. Millions of Americans struggle with credit because there is no system in place for people to learn how it works. If you want to learn more about credit and build yours, you’ve come to the right place.
Coming back to the topic for today, good credit saves you money! Imagine your refrigerator breaks down and it can’t be fixed. Let’s also say the cost of a new refrigerator is $300. How do you pay for your new refrigerator?
- Savings – If you have enough in your rainy day savings, kudos! Total Cost: $300
- Store financing – 10% interest over 1 year means you pay an extra $30. Total Cost: $330
- Credit card – 20% interest over 1 year means you an extra $60. Total Cost: $360
- Rent-to-own – $60 each month for 1 year means you pay extra $420. Total Cost: $720
In this scenario, having good credit allows you to use a credit card or store financing to pay for your refrigerator – saving you over $350 (You could buy a second refrigerator!) compared to rent-to-own!
This just goes to show how important credit is, you can save real money with good credit! Fig is dedicated to helping you gain access to these lower cost options and in our next post we’ll cover all the ways you can build credit.