If you have the basics to survive in life: food, clothing & shelter; would you still need money?
If you have all the money that you need, would credit be necessary?
I think so. If you have the basics to live your life and you want to live a BETTER life, then I think both money and credit are needed.
Money is the capacity to transact for the goods and services that you need to live your life. The more money you have then the better you can take care of living your life, taking care of your family and maybe have some left over for nice to have or luxury items/services.
But if you don't have all the money at once to purchase the necessities or luxuries of life, then credit comes into play. Credit it trust. Someone or some institution will lend you money or let you borrow the goods and services you are seeking with the trust that you'll pay them back later.
The more trust that you have demonstrated to pay back what you borrow, the higher confidence creditors will have in your ability to pay back plus whatever finance charges apply. This trustworthiness results in you having "Good Credit". Your record of borrowing and repaying back what you borrowed is tracked in you "Credit History".
"Bad Credit" means there is a lower confidence of your ability to pay back what you borrow and this would make creditors to lend you money or goods and services.
Good credit could mean:
Is it impossible to get any of the above with bad credit? I don't think so...but! It will cost you more money in terms of higher rates or less favorable pay back terms.
And what if your credit was bad enough? They maybe it won't be possible to get a credit card, a loan for a car, a loan for a major purchase, a loan to start a business, a loan for your business for purchases, paying staff, rent or expenses or to move into your dream home.
Money might not mean everything but food, clothing and shelter are not free in life. And even if they are for you, goods, services and other necessities in life are not free: medicine & medial expenses, transportation, education costs, charities/donations plus other areas that could individually or collectively help be part of a better life.
Even if credit doesn't mean anything to you today but if a car, a home or even starting a business could be in your future, then learning and building a good credit today can help you when you'll need it.
What if you tried and were rejected today or in the past for a credit card, a car, a loan, a home or to start a business because of bad credit? Have you given up all hope? If you haven't, invest some time in YourSelf to learn about personal credit and business credit as a way to improve your situation to allow for outcomes that you are looking for.
If you are looking to live a better life, I can't promise that Good Credit will make everything better but I think it's a useful area where it could help versus hurt you.
Starting A Business
Thinking about starting your dream business? To be your own boss and work for yourself?
Congrats on that thinking or decision. Maybe it's an easy decision for you or it may not.
Either way, if funding is what you need to help start your business but bad credit or no credit is getting in your way, then a way to help you progress towards you starting your business story is building your business credit.
How about if you don't know where to being to start a business?
How do setup a business so you save on taxes?
How about writing a business plan?
How about creating an operating agreement?
We have access to some courses that could be of help to you.
Small Business Funds