Over the course of your life you will deal with many financial transactions, and based on your credit score alone, these transactions can be a fair deal for you, or you can spend 20% or more than everyone else. You get to choose!
If you take care of your credit score, then it can benefit you in the following ways:
Lower interest rates on credit cards and loans. You’ll be considered “low risk” and will therefore always qualify for the best rates, pay lower finance charges on cc’s. You’ll also be more likely to qualify for the best credit card deals around, which include low interest rates, rewards and cash back. These perks encourage you to use your credit card and if you pay on time will help boost your credit score. You can get higher limits on a credit card.
Better chance for credit card and loan approval. If you’re applying for a loan, your credit score will be one of the most important factors up for consideration when the bank is considering approval.
More negotiating power. You will have options and lenders competing for your business instead of trying to find a loan provider.
Landlords will look favorably upon you… and it might give you an edge over someone with lower score. In a very competitive market, this might come as a distinct advantage. This also gives your landlord insight into your likelihood of paying them on time, and if your credit score is high, they might charge you a lower security deposit than someone with a lower score.
Better car insurance rates. You’ll pay less than similar applicants with worse credit. Some insurance agencies factor in your credit score when factoring your monthly premium. If your score is low, you’re unlikely to get the most affordable premium.
Avoid security deposit on utilities. Before opening a new account, utility companies may take a look at your credit report to look into your payment history. If that’s not up to par, they may require a deposit or letter of guarantee from a friend or family member who will pay in case you don’t.
Landing that job. Though they have to get permission from you to run a credit check, if an employer sees bankruptcies or frequent late payments, it may flag you as irresponsible and these financial problems may be disqualifier, depending on the requirements of the job. Many employers also look at credit score as an indication of honesty and punctuality.
All of those benefits are very useful because they save you money. That’s less you have to work and to earn, simply by paying attention to your credit score.
For more information on how to quickly improve your credit, and for a greater understanding of how your credit report is calculated, check out our free downloadable guide, linked below.
Resources:
Free Action Guide to 5 Simple Steps to Quickly Improve Your Credit