Plus, if you
demonstrate good payment habits over time, your credit card issuer may even extend additional credit to you without asking for more collateral.
Creditors will want to see healthy scores and a record
of good payment habits before offering a line of credit, loan, or payment terms.
For the person with bad credit, a cosign can provide them with a springboard that gives them the chance to
establish good payment habits, allowing them to improve their score.
If the person has
good payment habits, it'll help your score too.
Your good payment habits on your new bad credit personal loan will attest to your ability to be responsible with your finances, giving you a better credit rating and lower rates on future loans.
Good payment habits and a good credit score can mean a lower mortgage rate — and if your credit score isn't what you want it to be, you can improve it over time.
Good payment habits will raise score after balance transfers — Multiple balance transfers led to multiple hard inquiries and a score drop, but you should be able to turn it around... (See Transfer)