Perks of a good credit score

Achieving and maintaining a good credit score will help you to fund the major purchases that you’ve been dreaming about. Here are six perks of having a good credit score:

More confidence in obtaining a loan
Granted, financial institutions take more than just your credit score into account when you apply for a loan. For instance, they consider your debts and income. However, a good credit score will increase the likelihood that you’ll get approved for the loan you need.

Lower interest rates on loans and credit cards
A good credit score will help you secure lower interest rates on consumer loans and credit cards, regardless of what type of loan it is. A good credit score could save you 1% or higher on interest, which could translate to paying at hundreds less per month over the life of the loan.

A higher limit on the amount of the loan
A good credit score often correlates with how much money a financial institution will allow you to borrow. They view a high score as proof that you promptly pay back the money that you’ve borrowed, so they’ll be more likely to let you borrow more money than someone with a poor credit score.

Lower rates for car and homeowners insurance
Most states allow credit-based scoring, which means that insurance carriers assess your risk based on your credit score (among other criteria).

An easier time securing a rental
Credit scores are one of the key factors a landlord considers when screening potential renters. For example, a bad credit score caused by an outstanding rental balance or past eviction is a huge red flag for landlords. A high credit score will improve the chance that you’ll be approved to rent a house or apartment.

Avoid utility-related security deposits
If you are relocating, one of the expenses you might pay is a security deposit if you need to establish utility service for your new residence or transfer your current service to another location. Many utility companies will waive this fee if you have a good credit score, which can save you tens to hundreds of dollars.

A good credit score will enable you to secure low rates on major purchases, so you can have the financing you need to enjoy these investments.

Learn more about credit scores by watching this quick video about understanding and improving your credit score. 

Ready to improve your credit score? We can help. Contact a member advisor today!