A good credit score is very important in the financial world. With it, you can get bigger loans, a mortgage, buy a car, rent/buy a home and even get better. A good credit score has the potential to make your financial life easier.
Here are some major benefits of having a good credit score
You will enjoy better interest rates
Lenders tend to offer lower interest on credit cards and loans for people who have good credits. You have to understand that loan lenders will check the credit card history before they approve the loan. A good credit score will give you better loans than people with poor credit scores. You will also get lower interest rates when compared with people with basic credit score. This means that you get to pay less money on the credit card balances.
You have a better chance for credit card and loan approval
Before lenders can approve your loan, they check the credit card. The lenders are keen on information concerning your past credit card debts and how you handled them. If you have a good credit score, that is an indicator that you make loan and bill payments on time. This gives you a better chance of loan approval. They also take the credit card into account together with your income and debt so they can have an idea of whether or not you can make the payments on time. A good credit score means you qualify for higher loan limits. When the lenders see that you can make large payments on loan, they will trust you with more money.
A good credit score gives you better negotiating power. You have capability to negotiate for lower interest rates on the credits or loans. How do you do it? Many people refer to their past offers and the credit score to lenders and this gets them to lower some of the interest rates. A bad credit score restrains your freedom to shop around or even choose between convenient lenders.
Renting homes and apartments becomes easier.
That’s right! Landlords and property managers will check your credit score before they approve your tenant application. They can use this to check for past rental issues. if your loan history shoes issues like property damage and rental balance in your previous apartment it will be harder for you to find a new rental.
Better car insurance rates
With a bad credit, it is almost impossible to get a great insurance policy. People with poor credits pay more for insurance and good credit holders will pay less for the same services. Car insurance lenders and providers believe that people who have low credits file more claims. This makes them increase the prices for the car insurance.
Less payment on security deposits
Bed credit scores will gave you paying security deposits on utilities, loans and when you are getting new credit cards. A good credit card score gives you the chance to establish utility services and get large loans like mortgages on a discount. With a good credit score, you will make lower interest rate payments and won’t have to settle a security deposit first.