4 Ways Good Credit is Your Safety Net
A healthy score can help you when you need it.
A healthy savings account is your best defense against life’s curve balls. But sometimes setting aside some money every paycheck isn’t enough—particularly when you’re struggling financially to begin with.
A good credit score can be an additional safety net, providing you access to low-interest credit options that can help cover any expenses your emergency savings can’t. Here are some options:
1. Credit cards can be useful for relatively small emergencies. Of course, this requires you don’t max out your card on espresso and concert tickets. Keeping your balance low will not only offer you a good lifeline but can also boost your credit score. Plus, a good credit score can earn you the best rates.
2. Signature loans, also called personal loans, can be used for making purchases like car repairs or for doing projects like updating your kitchen. Signature loans are good for moderate-sized projects.
3. Home Equity Loans are available if you own your own home and have available equity in it (if you owe less than your home is worth). This is a one-time lump sum loan, usually of a sizeable amount. This can be good for big projects, like remodels, additions, building a shop, or paying off your other higher-rate debt.
4. Home Equity Lines of Credit are much like a home-equity loan, except instead of taking out one big lump sum, you can use the line of credit like a credit card. You can make purchases, pay the balance down, and make new purchases. This is great for regular projects or sizeable emergencies.
Your may find other options, but these are the main tools you can use to build a safety net. Even better—by using your available credit options, making payments on time, and paying things off, you are continuing to build your credit score. Skyward offers all these options, plus can council you on how to increase your credit score rating. Come by one of our branches or call us at 833-759-1941 to learn how we can help you today for the future.