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I have already stated how this works; re-read above.
Yes, I <b>can</b> honestly say that I'll get lower interest rates in the future by building credit now. That is how it works.
If you have good credit, lenders are more eager to loan you their money. For people that have really great credit, they <b>really</b> want to lend you money - because they're gonna make money on it! It's a good investment to them! So they want you to choose them - and they offer lower interest rates. We call them "bidding wars" here in the defense industry. Mr. Lender A wants to be the lowest bidder (interest-wise), because he <b>wants</b> to get your money (because you have a superb history of borrowing money and paying it back with interest, meaning that he is going to make money on you), so he offers a used auto loan at 8%. Mr. Lender B wants your money too, so he offers a rate of 7.5%. Mr. Lender C really wants your money, so they offer 6%. You take their offer back to Mr. Lender A & Mr. Lender B and say "I can get 6% here, what can you offer me?" Continues on until you both are happy.
As I've demonstrated above, even half of a percentage point on a mortgage can save you <b>real dollars</b>, which you can put to work and make even more money.
Credit, investing, buying... it's all a big game, and you'll do really well for yourself if you know how to play it.
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