The Benefits of Having a Good Credit Score
By Tiffany Sorensen
Your credit score can affect you in more ways than you probably realize. From buying a new home to searching for jobs, a good credit score will work tremendously in your favor. Here are just a few advantages associated with having an exemplary credit score.
Economical Mortgage Rates
Those who have good credit history are more likely to be offered competitive mortgage and refinancing rates. A high credit score proves to banks that you’re responsible about returning money that’s lent to you. It also implies that you have more “negotiating power,” which means you might be able to bargain with banks about home loan rates, closing costs, and more. Banks are businesses, so they are usually willing to negotiate prices if they know you’re a reliable customer.
Financing a Car for Less
If you’re looking to buy or lease an automobile, having good credit will save you money while you finance your car. First of all, having good credit will allow you to get a low-interest car loan. Whether you apply for a car loan through a dealership or a bank, you can be sure that lenders will investigate your credit score.
Car insurance companies equate good credit with care and responsibility. They believe that responsible people drive more carefully and thus have fewer car accidents. Therefore, a high credit score implies lower insurance premiums, too.
Access to Desirable Credit Cards
If you have a high credit score, you might qualify for low credit card interest rates. That means if you can’t pay your credit card bill in full, you could save money each month on interest payments. A high credit score implies greater borrowing capacity, as well. The higher your credit score, the higher creditors set your credit line. Knowing you have a high credit line can give you peace of mind in case you have to charge a large purchase.
Low-interest credit cards may also offer rewards, cash back, and other benefits to corresponding cardholders. To maintain good credit, avoid charging more to your credit card than you can afford to pay back.
Increased Likelihood of Landing a Job
You might not have known that employers often check applicants’ credit scores. A high credit score tells an employer that you’re trustworthy and don’t neglect your responsibilities. These are two traits that prospective employers find very appealing. Thus, having a good credit score could improve your chances of landing the job you want.
No Security Deposits
You never know when you might need to change residences. If you have a good credit score, you can avoid paying security deposits on utilities that sometimes total hundreds of dollars. In addition, you can evade security deposits on cell phones. People with bad credit have trouble getting contracts with cell phone service providers. They can’t take advantage of affordable service plans and discounted cell phones, either. With good credit, you can save money on utilities and cell phones alike.
Don’t feel dismayed if your credit score isn’t as high as you wish; it’s never too late to start repairing your credit score. Contact us today to learn more about this important step.