English: Having good credit has many benefits. Many times when we think about buying a house or a car, we just think about whether we qualify or not based on our credit. But the reality is that there are other benefits of having good credit for these two transactions.1. Buying a house- Your credit is important in getting qualified for a mortgage. Yet it will not only determine if you qualify or not, but it will affect your rate, the amount of money you need to have and your monthly payment.a. There are different types of mortgage programs available, and the better your credit, the more, and better,programs you will qualify for.b. The interest rate you get is based on your credit. The higher your score, the lower the rate, and consequently the lower your paymentc. The better your score, the less down payment you have to come up with.d. In most cases, if you put less than 20% down the lender will require Private Mortgage Insurance(PMI). This is to help protect the lender, not you, in case you default. The lower your score, the higher the PMI rate, and therefore the higher your monthly payment.2. Buying a car- The reality is that nowadays most anyone can buy a car no matter what their credit score is. The difference though of having good credit is that you will get a better interest rate, better terms and have to put less money down.a. Take for example a new $25,000 car. If you have good credit you may be able to get a 1% interest rate for 6 years, which is a payment of $358 a month. With bad credit you may pay 10% interest, or more, for 6 years, which is a payment of $463 a month for the same car! That is a difference of $105 a month or $7,560 over the term of the loan! You may also be asked to put a down payment to minimize the lender’s risk.The most important goal for this year- improve your credit score!
