Everyone can survive with bad credit but it’s not cheap. Having a good credit score can save your money and make your financial life way easier in terms of low-interest rate on loans and credit cards, better car insurance rate, gives you the power to negotiate your loan terms, easy approval for home loans, get better employment prospects and much more.
What is a Credit Score?
Credit is a three-digit number ranging from 300 to 850. Credit scores calculated using the information in your credit report, including your payment history; the amount of debt you have; and the length of your credit history.
Is 760 a Good Credit Score?
Credit score generally range from 300 to 850.
- A credit score from 580 to 669 is considered fair
- A credit score between 670 to 739 is considered good
- A credit score between 740 to 799 is considered very good
- A credit score between 800 and up is considered excellent
Higher the credit score means in the past you have responsible credit behavior, which may make creditors and lenders more confident when evaluating a request for credit
Ever wonder how an excellent credit score can impact your life? Here are some benefits of having a good credit score.
Get Better Interest Rates on Loans and Credit Cards
Interest rate is having a direct link with your credit score. The interest rate is the cost that you pay for borrowing money. If you have a good credit score then you will pay low-interest rates on loans and credit card balances.
The fewer bucks you pay for loans, the more money you have for other expenses. Be it a car loan, personal loan, home loan with a high credit score, a bank might offer you a low-interest rate on loans. On top of this, you can also get benefits such as eligibility to get a higher loan amount and a discount on the processing fee.
In 2017 those who are having excellent credit scores pay a much lesser interest rate of 36% on home loans as compared to those with a fair credit score.
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Get Quicker Loan and Credit Card Approval
Borrowers with an excellent credit score are considered low-risk borrowers and therefore, the chances are quite high of getting quicker loan and credit card approval. An excellent credit score doesn’t always guarantee approval as lenders still considered other factors like income and debut.
A high credit score is an indicator of your credit worthiness, and this will allow the lender to make decisions, much faster, and decrease the risk of not getting approved for a loan or credit card.
Get Excellent Credit Card Deals
The most rewarding credit cards including low-interest rates, best rewards such as travel points, cash back, and more. what we all need but for this excellent credit score is a must. Which help you save your money with such ease.
Negotiating Power
Having an excellent credit score gives you leverage to negotiate on lower interest rates on loans and credit cards. You can take advantage of other attractive offers from other companies with a good credit score on the other hand individuals with lower credit score doesn’t have any other options instead of paying a higher interest rate on loans and credit cards
Quicker Approval of Higher Credit Card limits
Borrowing capacity is based on your income and credit score. Having an excellent credit score lets you borrow more as you have demonstrated that you will pay back on time what you borrow. But this doesn’t mean that individuals with an average credit score can’t be approved for a loan instead the amount will be limited.
A higher amount of loans increases the risk for lenders. Lending to individuals who are not responsible enough multiple the risk. So, having a good credit score can higher the amount of loan.
Get Better Car Insurance Rates
Insurance companies use information from your insurance history and credit report to develop your insurance risk score, so they often penalize people who have low credit scores with higher insurance premiums. So with a good credit score, you simply pay much less than the other applicants with a poor credit score.
No Security Deposit on Utilities
Utility companies might look at your credit score to get a sense of your credit history and having a bad credit history will result in paying the deposit or sign by any of your friends and family to pay the bill if you fail to. These deposits are sometimes $200 to 3200 and a huge inconvenience when you’re relocating.
Quicker Chances Of Getting Hired
With a good credit score, the chances of getting hired are much easier. Before sending you an offer letter employers check your credit history with your permission. If they find out that you have declared bankruptcy or late payments, it can raise a red flag and you are not responsible as you have seen hence not fit for the position.
Apartment on Rent
While having an apartment on rent, the landlord checks your credit history to check whether you will pay the rent on time or not If your score is too low or your report has too many negative marks, getting that dream apartment may be difficult. Even if you’re able to get an apartment with bad credit, your landlord may charge a higher security deposit or request a co-signer on the lease.
So now we have explored 9 benefits of a good credit score. A good credit score is something to be proud of, because of all the benefits. Especially if you’ve had to work hard to take the credit score from bad to good. keep doing what it takes to maintain a good credit score. Only a few missed or late payments to start getting off track.
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