The Benefits of Good Credit

You don’t need perfect credit to live a decent life but it won’t be a walk in the park and it could cost you a pretty penny. However, a good credit score can help you create financial security and make life a little less complicated. Don’t believe me? Here are a some of the rewards that come with good credit.



Lower Interest Rates

Interest rates are the fees that you are charged for taking out a loan. Usually, the interest rate that you are charged is in direct relation to your credit score. Having a good credit score can almost guarantee the premium interest rates. Additionally, it can directly impact the amount you pay on your card balances. Basically, the better your interest rate, the quicker you can clear the debt and you’ll be have the finances for other things in life.

Better Approval Rate

When you have an impaired credit score, you already know not to apply for a loan or credit card. Previous experience has taught you that the application will be denied. Good credit doesn’t instantly get your application approved. Lenders rely on a variety of things to determine how much of a risk factor you are. Still, good credit can only improve your approval rate. You’ll be able to submit that credit application with no reservations.

Negotiating Strength

Good credit score gives you strength and power to negotiate. You can work out the best interest rates for yourself. If you feel like you need a little extra negotiating strength, benefit from alternate opportunities that other businesses have given you because of your credit. Nevertheless, impaired credit leaves you no wiggle room and lenders will stand firm on their terms.

 

Borrow More

 

The amount of credit you are given is based on two things; what you bring in and your credit score. Another great reward of having good credit is that it allows you to borrow more. Your good credit serves as evidence that you are trustworthy and responsible. Basically, they’ll get their money back when its expected! impaired credit doesn’t automatically mean that you’ll be denied. Yet, the amount that you can borrow will be a lot less that it would be if your credit was in good standing.

 

Buy That House or Rent That Condo

 

More property owners are including your credit score as part of the application review process. If your credit score has been negatively impacted by a prior eviction or unpaid rent, the chances of you purchasing or renting a property can be gravely impaired. It’s easier to improve your credit so that you can live where you want to live, than it is to put in the leg work to find a landlord that works with impaired credit.

 

Better Auto Insurance

 

Need vehicle insurance? Vehicle insurers are ruthless when it comes to using your impaired credit score to their advantage. These companies use the data from credit bureaus and your past insurance contracts to determine how much of a risk you are. People with impaired credit are often punished with higher rates. Often, having good credit can help ensure that you get the best available rate.

 

Tell The World

 

All of the rewards of having a good credit score are definitely worth taking pride in. Even more so, if you’ve put in the time and effort to improve it on your own. If you’ve been lucky enough to avoid the pit falls of a ad credit score, continue to what you’re doing. It doesn’t take much for things to go left.

 

Overall, your credit score can determine the life you live but it’s never too late to improve it. Look around. You’ll be surprised how easy it is! It can be done without breaking the bank and you don’t have to put yourself in a worse financial situation, to get to a better one. 

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