Good credit scores are very important, especially when it comes to dealing with major finances. With a good credit score, you can get bigger and better loans, a great mortgage deal, a good rental home and even a car.
Here are some major benefits that come with owning a god credit score
You get to enjoy better interest rates
It does not matter who you are, loan lenders will check your credit card history before they approve your application for a loan. With a good credit score, you are more likely going to get better loans that anyone who has a lower credit scores. Lenders are known to offer lower interest on loans and credits for people who have a good credit history. Basically, you get to pay less interest on the credit card balances than people with average or lower credit card history.
There is a better chance for loan and credit card approval
As you know, lenders will check your credit card history before they approve any loan. They are usually keen on the information concerning the previous loan and credit card debts and how you dealt with them. If you have a great credit card sore, it is an indication that you make the loan and bill payments on time. This way, you get a better chance for loan approval. Lenders take your credit card account together with debt and income to get a feel of how much loans you can manage and if you can complete the payments on time.
You gain negotiating power
A good credit score naturally has the ability to give you a great negotiating power. With a close to perfect score, you are capable of negotiating for lower interest rates on the loans and credits you get. One common technique is to refer to the lender’s previous offers. This way, you can use it to negotiate for lower interest rates. Having a poor credit score will restrain you from choosing between different convenient lenders and shopping for the best deals.
Renting apartments and homes will be easier for you
Property managers and landlords check your credit scores before approving your application. Your credit history contains a lot of information, which means they get access to past rental issues if you have had any. Issues like rental balance and property damage will make it harder for you to find a home owner willing to rent you their property.
Less security deposit payments
If you have a bad credit score, lenders will require you to pay a security deposit on almost anything. You will need the deposit for things as simple as new credit cards and utilities. With a good credit card, you can establish utility services and get discounts on larger loans like mortgages. Having a good credit score will lower the payments you have to make on the security deposits.
Better car insurance rates
It is close to impossible to get a good auto insurance policy when you have a poor credit card score. People with a great credit score pay less for insurance and people with poor credits pay more for the exact same services.