The 8 Benefits of Having a Good Credit Score

good credit score
Your credit score can have an impact on your financial life, from how much you pay in interest rates to your ability to get financing on big-ticket items like houses and cars. By establishing good credit and keeping it in good standing, you can enjoy numerous benefits that make your life easier and more affordable. These are the top seven reasons why you should maintain a good credit score at all times.

A credit score is a number that allows lenders to quickly and easily determine whether or not you’re worth lending money. It rates your ability to pay back loans based on your past borrowing history. The higher your credit score, the better! A high score means it’s likely you’ll pay back your loans in full, whereas a low score means there’s some risk involved in extending your cash.

1. Car Insurance

When people think about saving money on car insurance, they usually consider shopping around for a new company. But, most insurers don’t factor your credit score into their rates. If you want to save money on car insurance, look at your driving record—not your credit score. Speeding tickets and DUIs will lower your rate much more than bad credit will raise it. To keep your premium down, don’t speed too much! It might seem counterintuitive, but that speeding ticket you got two years ago could be costing you hundreds in higher premiums every year if you haven’t taken care of it already.

2. Mortgage Rates

While you can’t control interest rates directly, you can keep an eye on them and adapt your finances to changes as necessary. If mortgage rates are headed higher, it might be time to think about refinancing or taking out a shorter-term loan; if they’re going down, you might be able to save money by locking in a lower rate. It never hurts to ask for help—many companies offer free mortgage-rate quotes that can help ensure you get the best deal possible. And remember: when it comes to keeping your credit score high, every little bit helps!

3. Debt Consolidation

If you have credit card debt and are looking for ways to pay off your balances, you may want to consider consolidating your debt with a company like Slice Financial or Moven. These companies will pay off your creditors in exchange for a monthly fee and even give you extra cash to put toward other expenses. With any loan, make sure to do plenty of research before you sign on any dotted lines. Make sure that all applicable state and federal agencies fully license any company offering debt consolidation. You’ll also want to be aware that sometimes debt consolidation is nothing more than another high-interest loan in disguise. Before signing up for one, make sure it fits into your budget and isn’t just going to dig you deeper into trouble.

4. Credit Card Approval

When you apply for credit, companies look at your credit score to determine whether or not they want to lend you money. A higher score means it’s more likely that a lender will approve your application; if your score is low, lenders are more likely to reject you. While it might seem logical that an increased credit limit would reward good financial behavior, no guarantee will happen. For example, card issuers don’t typically consider how much available credit you have left when they decide to approve or deny applications.
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5. Renting an Apartment

When it comes to buying a car, your credit score is one of many factors that affect your interest rate. In addition to affecting your interest rate, bad credit can also affect what type of loan you qualify for and how much you have to pay upfront. For example, if you don’t have good credit but have money saved up or proof that you can make payments, some car dealerships might be willing to work with you on financing. However, others might not even consider selling their cars to someone with bad credit and suggest paying cash. It’s essential to figure out how much money you can realistically afford per month so that it doesn’t become more expensive than it needs to be.

6. Buying a Car

If you have bad credit, you’ll pay more for car insurance, meaning your monthly payments will be higher. When you’re shopping for a new or used car, ask about your credit score and how it will affect financing. In some cases, dealerships can get approval from lenders to finance applicants with low credit scores at no cost to you. If not, it might be better to walk away from a deal if you can’t negotiate something similar on your own. A car dealership isn’t required to provide financing if they aren’t equipped to do so – even if they tell you otherwise.

7. Cell Phone Plans

The challenge with finding a good cell phone plan is that every person has different needs. Different people want other things from their cell phone carrier, and those needs change over time, making it hard to choose something that will work well for you for years to come. If you’re looking for reasons to switch your cell phone carrier, our guide will help you find one. We’ll look at seven different reasons why you might want to get rid of your current plan: high cost, poor customer service, terrible coverage, not enough data allowance, phones are too expensive, or just getting plain sick of it. Those are some pretty good reasons, and they’ve helped many people improve their situation by switching their providers.

8. Avoid Security Deposits on Utilities

You may be able to avoid paying hundreds of dollars in security deposits to gas, electric, and water companies. If you have good credit, contact your utility company and see if they’ll trust you based on your excellent credit score. By giving them your checking information and other evidence that you are an honest person (like references from past landlords or employers), some companies will waive their deposit requirement if you promise to pay on time each month. As a bonus, it can help boost your credit score too!