A credit score is a three-digit number that can impact your life in more ways than one. If you do not currently have a good credit score, then you should try your best to improve it. There are a number of ways that you can benefit from having a good credit score.
Better Chance of Getting a Loan or Credit Card
Your credit score is one of the things that lenders look at before they decide whether they are going to approve you for a credit card or a loan. Your income and debt are other factors that are taken into consideration, so having a good credit score is not a guarantee that you will be approved. However, your chances of approval will be much higher if you have a good credit score.
Lower Interest Rates
It is possible to get approved for a loan or credit card even if you have a low credit score. However, it is likely that you will have higher interest rates. High interest rates will cause you to spend more time paying off the loan. Fortunately, if you have a good credit score, then you will be able to get lower interest rates.
Better Car Insurance Rates
You may be able to save money on auto insurance rates if you have a good credit score. A low credit score is a red flag for many insurance companies. Insurers have stated that people with bad credit have a tendency to file more claims. That is why people with low credit scores are often charged more.
Better Chance of Finding a Job
A good credit score shows that one is financially-responsible. Many employers believe that if a person is responsible with their credit, then they will also be responsible on the job. That is why they may check credit before hiring employees.
Better Chance of Getting Approved for an Apartment
Apartment managers look for tenants who are financially-responsible. They want someone who is going to pay the rent on time each month. If a person has a good credit score, then they will likely be able to pay their rent on time every month.
Avoid Security Deposits on Utilities
Many people have to pay $100 to $200 deposits before they turn on their utilities. Moving is already expensive, so paying this deposit can create another financial burden. Fortunately, this security deposit can be avoided if you have a good credit score.