Benefits Of Having A Good Credit Score

While you can survive with bad credit, a good credit score will make your financial life much easier and help you save. Apart from the bragging rights, a good credit score allows you to enjoy the following benefits:

Lower Interest Rates

The interest rate you are offered when you apply for credit cards and loans is directly tied to your credit score. With a good credit score, you’ll almost always qualify for the best rates a lander has to offer. The lesser you pay in interest, the faster you’ll be able to pay off the debt.

More Negotiating Power

With a good credit score, you’ll have several offers when you apply for a credit card or a new loan. This will give you the leverage you need to negotiate a lower interest rate with your preferred lender.

Better Chance of Approval (and Approval for Higher Limits)

A good credit score significantly increases your chances of being approved for new credit. You can confidently apply for a loan or credit card, and banks will be willing to let you borrow more money.

Easier Approval for Rental Apartments

Credit scores are used as part of the tenant screening process by many landlords. With a good credit score, you’re very likely to snag an apartment of your choice. You don’t have to bother with the hassle of looking for a landlord that will approve renters with poor credit.

Better Car Insurance Rates

With a good credit score, you’ll typically pay less for auto insurance. Auto insurers often penalize people who have poor credit scores with higher insurance premiums.

No Security Deposits on Utilities

A good credit score means you won’t have to pay a security deposit (sometimes $100 to $200) when you put a utility service in your name or transfer service when relocating. You can also get a cell phone contract with no security deposit.