Creditworthiness and Character: Illustrating Responsibility

Clean credit offers a plethora of rewards: willing lenders, competitive interest rates, advanced buying options, and more. Why do such doors open? Responsibility, of course. Not only do clean credit scores inspire lender confidence, ones journey getting there is worth consideration as well. Read on to discover how achieving a record of clean credit illustrates your character strengths in addition to your financial fortitude.

Strength #1: You stick to a schedule. Clean credit means paying bills on time, and sticking to a schedule conveys consistency. When you are able to keep track of multiple payments, lenders take comfort in your continued diligence. Your level of responsibility will shine through with a clean payment history.

Strength #2: You understand limits. Clean credit is about balance; if you borrow too much, the scale will tip. No matter your income, it is important to understand how much you can afford to borrow and the risks involved. Ideally, your credit card debt should never exceed 25 percent of your credit limit. Keeping an eye on a ballooning balance will help your credit score and emphasize your conservative nature in the process.

Strength #3: You care about your things. Few people can afford a home or car without a loan. When you pay your mortgage and auto bills on time, your lenders are assured that you care about your possessions. While foreclosure or repossession is sometimes unavoidable, those with a clean record will have an easier time negotiating a forbearance period or new payment schedule if necessary. Lenders like to reward customers for loyal behavior, a perk for those who pay attention to their debts.

Strength #4: You love a deal. Clean credit means access to the best interest rates available. As a result, consumers who take their credit scores seriously often save thousands of dollars on major purchases. Lenders love customers who love a good deal; it entices them to gain more of your business by offering the greatest financial opportunity. Keep your credit score high to keep the bargains rolling in.

Strength #5: Conscientiousness is on your list. The root of any transaction is honesty. By keeping your word and paying your bills, lenders know that your signature is a valued commodity. In a world of foreclosures, abandoned debt, and Chapter 7 bankruptcy protection, this virtue will not go unnoticed.

Managing credit is like managing life—the stronger your character, the more friends you gain. While clean credit is sometimes difficult to achieve, the benefit lender dividends are undeniable. Approach your finances the way you would approach a trusted confidante, and you will experience a change in perspective.