Did you know that the average American consumer has a credit score of 711, which is quite good? Yet, many people struggle to raise their credit after a financial setback or years of poor decisions. Still, others fail to monitor their credit because they don’t see its importance.
Are you wondering what the benefits of a good credit score are? If so, keep reading as we discuss the tops five reasons to have a good credit score!
Save on Insurance
Did you know that insurance carriers look at your credit score when deciding whether to approve your application? And, even if you get approved with poor credit, you may end up paying a higher premium.
So, having a good credit score can amount to big savings, especially when it comes to auto or homeowners’ insurance.
Qualify for Low-Interest Credit Card Deals
With a good credit score, you’ll be eligible for a lower annual percentage rate (APR) when opening new cards. Even if you aren’t opening a new line of credit, you’ll likely receive offers to upgrade current credit cards to accounts with better rates or cash-back rewards.
And, often, lenders who see your good track record will prequalify you for low-interest automobile or home loans. So, you won’t have to worry about applying for these when it comes time to make big purchases.
Get Higher Credit Limits
People with good credit typically have much higher limits on their credit cards than those with a low credit score. The reason is that lenders see them as less of a risk, so they are willing to put more money at their disposal.
So, if you want to get a higher credit limit, you should start by learning how to improve your credit score. But, of course, it’s also important to know what lowers your credit score so you can avoid these mistakes.
Avoid Security Deposits
Cell phone providers may not give you a contract if you have a bad credit score. So, you may need to pay extra until you’ve established yourself as trustworthy. Yet, those with good credit can get the latest models of cell phones at a discounted price by signing a contract.
Similarly, utility companies often make you pay a security deposit when transferring a service into your name. However, if you have good credit, this fee is typically waived.
Improve Your Reputation
Another reason that it’s important to have a good credit score is that it characterizes you as a trustworthy and responsible individual.
So, if you apply for a job, you won’t have to worry about a poor credit report showing up on your background check. Instead, potential employers will know that you follow through with your financial commitments and are a reliable candidate.
Experience the Benefits of a Good Credit Score
There are so many benefits of a good credit score, but you learned some of the most important reasons to start improving yours in this post! So now, it’s time to access your credit report and look for areas to improve. Even if it takes some time to raise your score, the perks will pay off in the long run!
Would you like to learn how to get a good credit score? If so, read more posts on our website that offer advice about credit score improvement and managing your finances!