Your credit score is an important number that reflects your creditworthiness and financial responsibility. Having a good credit score opens many doors and can save you a significant amount of money over time. Here are 8 major benefits of maintaining a good credit score.
Lower Interest Rates On Loans
The higher your credit score, the lower the interest rates you can qualify for on loans and lines of credit. With a good score, you can get approved for a mortgage with a competitive rate, low-interest auto loans to buy a new vehicle, and personal loans for other large expenses. Interest rates on credit cards and other revolving lines of credit will also be more favorable. This can save you thousands of dollars each year that would otherwise be paid in interest charges.
Easier Approval For Apartments
Most landlords and property managers run credit checks on potential tenants. A good credit score shows you are responsible with your finances and more likely to make rent payments on time each month. With a solid score, you will have an easier time getting approved for an apartment and may even be able to negotiate a lower security deposit. Those with poor or no credit scores often face additional hurdles like larger deposits or the need for a co-signer.
Qualify For Better Insurance Rates
Insurance companies view consumers with good credit as lower risk, so they are able to qualify for lower premium rates. Auto, home, and health insurers will often consider your credit-based insurance score when determining policy rates. With good credit, you can save money on essential insurance coverage each month and may have access to additional discounts. Those with poor scores are seen as higher-risk customers and must pay significantly more for coverage.
Achieve Cell Phone Approvals
Cell phone carriers also commonly check credit reports and scores when approving new phone financing agreements, service contracts, and family plans. Good credit improves your chances of not only getting approved but also unlocking additional benefits like $0 down on a new phone, lower service plan rates, or shorter contract terms. Carriers view high-score consumers as the most reliable and offer the best packages and terms to keep their business.
Job And Career Opportunities
Surprisingly, your credit report and score can also impact your career opportunities. Many employers run credit checks on job candidates as part of the application screening process. A good score shows financial responsibility, trustworthiness, and stability. Those with bad credit may face difficulty getting approved for jobs that provide access to company accounts, funds, and information systems where sound judgment and integrity are important. Maintaining good credit is vital for career and professional opportunities.
Approved For Loans And Credit In Emergencies
With a good credit score, you will have access to financing and credit when emergencies and unexpected expenses arise. Auto accidents, medical bills, home repairs, and other emergencies can often cost thousands of dollars. Good credit gives you the ability to quickly get approved for personal loans, credit cards, and lines of credit to handle emergency costs, even if your savings are limited. Those with bad credit usually struggle to find financing when they need it most.
Rewards And Perks With Credit Cards
Credit card companies like TruWest Credit Union frequently offer additional rewards and perks to customers with excellent credit scores. Click here to discover more. You can qualify for cards that provide cash back, travel points, and other valuable rewards on all your daily purchases. Higher spending limits, airport lounge access, insurance, and entertainment benefits are some other perks available to high-score cardholders. Make your money work for you by using credit cards strategically and paying balances on time each month.
Peace Of Mind And Confidence
Maintaining a good credit score provides a sense of financial confidence and stability. You have more control over your money and banking matters. Interest rates, insurance costs, and other expenses are kept lower each month with good credit. You also have more options and flexibility in housing, vehicles, and careers. Perhaps most importantly, you gain peace of mind that you can access credit and financing as needed in both good times and bad. Overall, good credit leads to less financial stress and more freedom to enjoy life.