You always hear people talk about how terrible the effects of having a low credit score are, but what about the benefits of developing a high credit score? What rewards can you reap from having a score that falls in the “excellent” category? Well, here are a few.
Access to Great Credit Cards
If you dream of keeping a high reward credit card in your wallet, then you’ll probably need to buff up your credit score first. Use your current credit card to build your history and increase your score. Then, once the number falls in the above-average range, you’ll be able to obtain some pretty amazing credit cards that will offer impressive rewards, like air miles and cash back programs.
Better Chances of Scoring a Mortgage
When it comes time to buy a house, the better your credit score is, the more likely you are to obtain a home loan with low interest rates. Banks are often unwilling to loan money to clients with low credit scores because they are unsure as to whether or not they’ll be repaid. With a stellar credit score, you’ll show the bank that you’re financially responsible enough to pay off the loan they give you.
Lower Insurance Rates
Auto and home insurance providers usually offer lower rates to people with strong credit scores. Your superb score will instantly help you qualify for better policies and prices, which can save you big bucks over the course of your life.
Great Interest Rates
Whether you’re applying for a credit card or a auto loan, your score is a big determining factor in the interest rates you’re eligible for. The higher your score is, the lower your interest rate will probably be. This can make paying off houses, cars, credit cards, and debts of all kind much more cost-effective in the long-run.