Your credit score—an indication of your creditworthiness and ability to make timely payments—can influence many aspects of your life. So, what can you get with good credit, and what becomes harder to obtain with poor scores? If you want to learn why paying back your debts on time can change your life for the better, here’s an overview of the five advantages of good credit scores.
Better Loans
One of the major advantages of good credit scores is the many ways they will impact your loans. While having a high score won’t guarantee you’ll qualify for a loan, it will significantly increase your chances of being approved. Additionally, those with good credit also benefit from having lower interest rates for loans. The interest rate is the price everyone needs to pay when borrowing. The lower the interest rate is, the less that needs to be paid. As a result, you’ll be able to pay off your loans much faster than if you had a bad credit score.
Another way that credit scores are related to loans is their size. Because you have proof showing that you’re able to pay back borrowed money, loan companies are more willing to offer loans of greater sizes. This can be incredibly helpful if you plan to buy a home, as the loans needed for mortgages can be rather high.
More Credit Card Rewards
What can you get with good credit? Better credit cards! Strong credit scores are needed to obtain the best reward cards available, including cash-back reward cards, travel reward cards, and others. There are also unique credit card perks offered to those with good credit, meaning that paying back money responsibly can actually help save you money in the long run.
Lower Insurance Rates
Depending on the company, you might be able to receive better insurance rates than those with poor credit. Some insurance companies utilize insurance history as a means to develop your insurance risk. As a result, they might charge you less for your auto insurance if they don’t consider you a risk. Establishing a reliable image is just one of the long-reaching advantages of good credit.
Increased Rental Approval
Many landlords look at their candidates’ credit scores to see if they’d be a trustworthy candidate for a rental property. In some cases, the minimum credit score required to qualify for an apartment is 620—although some landlords can be less lenient than others. This is one of the most important advantages of good credit, as it can open the door to rental opportunities that you otherwise wouldn’t have.
Easier Job Applications
Did you know that there are some job positions out there that require good credit scores to qualify? It’s not so much that having a high score is mandatory, but certain employers use it like a background check—if the candidate is not good at borrowing money, then they may not be a responsible or trustworthy hire.To learn more about the advantages of good credit—and how to improve your credit scores—contact our financial counseling service in Philadelphia. Quality Credit Repair offers a variety of services to help get your credit back on track, including our debt consolidation consultants. For more information on our personal finance assistance, call us today to learn more and schedule your appointment.