When it comes to money, it literally pays (and saves) to have a good credit score. To get all of the things most of us want in life – an education, a house, a car, most of us need credit. Even if you do have cash to pay for these purchases, your credit history shows how you truly are with money and keep up with your financial obligations. The CGS Team is sharing 6 ways you can truly benefit from having a good credit score.
6 Benefits of a Good Credit Score…
Get the Best Credit Card Offers
Financially-savvy people know that rewards programs on their credit cards can yield some great returns, especially when you pay your card off in full each month. The best rewards cards are reserved for people with great credit scores. These cards often come with the most attractive rewards points, free gifts, exclusive cash-back deals, and low introductory rates.
Skip the Utility Deposits
You’ve probably already experienced this – when you move into a new house or apartment and first establish utility services with a new company, they often check your credit to get a sense of your payment history. Depending on what they find, they can charge you upwards of $250 as a deposit for establishing an account with them. You get the money back after a certain period of time, but wouldn’t it be nice to keep your money from the start? A good credit score can result in $0 in utility deposits!
More Negotiating Power
Yahoo Finance Contributor Sabah Karimi nailed it when it comes to the benefits of a good credit score when negotiating terms: “If you’re applying for a personal loan from a corporate bank or a private loan from a privately held financial institution, having a high credit score could give you more negotiating power.
You may be able to get a higher credit line, lower interest rates, or work out an attractive repayment plan just because you have such a solid credit history. Don’t be afraid to use your credit score as leverage when negotiating a deal; the lender will consider your ability to pay back that loan on time when qualifying you for a certain amount.”
Intriguingly Low Interest Rates
When it comes time to finance a house or a new car, a good credit score can help you save a ton of money in interest. Those with higher scores tend to get the lowest interest rates available. Since these are large-scale purchases that take a lot of time to pay off, even saving .5% in interest can result in thousands of dollars’ worth of savings. Lenders are more likely to offer these low rates to those who have a great credit score and clean credit history to back it up.
Easier Approval for Your Business
If you are thinking of starting a business, but you have bad credit history and a low credit score, think again! Most new businesses require a loan to fund the start-up costs, since the business is new and has no credit history, the lender is going to look at your credit history when deciding to approve a loan for you. A bad credit score can result in a steeply priced loan, if any at all.
Better Car Insurance Rates
Unfortunately, most insurance companies link a good credit score to a good driver, and a bad credit score to a bad driver. While this isn’t necessarily true, it’s what they do. Insurance companies check credit, and a good score can result in a lower premium for you. Insurance companies can’t turn you down based on your credit, but they can raise your premium if your low credit score stands out to them.
Related: 4 Bills Affected by Credit
If you aren’t there yet in terms of a good credit score, you can get there! Check out the post 7 Tips to Help Boost Your Credit Score. Do you have a good credit score, if so what are some of the benefits you’ve notice to having it? Do you receive a lot of credit card offers with great introductory promotions? Share a comment below to get in on the discussion!
2 thoughts on “6 Benefits of a Good Credit Score”
I’ve been establishing my credit history for about 10 years now, and I’ve worked hard for my good scores! I notice that if I run up a balance, my score drops drastically…but if I pay it off, it goes up drastically! I think it helps when you have that history, as if I didn’t, it would probably not go up as much.
Good credit is power! Enough said!