- Posted by admin
- On December 13, 2019
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Low Interest Rates on Credit Cards and Loans. If you have a good credit score, you’ll almost always qualify for the
best interest rates, and you’ll pay lower finance charges on credit card balances and loans. The less money you pay
in interest, the faster you'll pay off the debt and the more money you have for other expenses.
Better Chance for Credit Card and Loan Approval. Having an excellent credit score doesn’t guarantee approval,because lenders still consider other factors like your income and debt. However, a good credit score increases yourchances of being approved for new credit. In other words, you can apply for a loan or credit card with confidence.
More Negotiating Power. A good credit score gives you leverage to negotiate a lower interest rate on a credit card
or a new loan. If you need more bargaining power, you can take advantage of other attractive offers that you’ve
received from other companies based on your credit score. However, if you have a low credit score, creditors are
unlikely to budge on loan terms, and you won't have other credit offers or options.
Easier Approval for Rental Houses and Apartments. More landlords are using credit scores to screen tenants. A bad credit score, especially if it’s caused by a previous eviction or outstanding rental balance, can severely damage your chances of getting into an apartment. A good credit score saves you the time and hassle of finding a landlord that will approve renters with damaged credit.
Avoid Security Deposits on Utilities. These deposits are sometimes $100 to $200 and a huge inconvenience when you’re relocating. You may not be planning to move soon, but a natural disaster or an unforeseen circumstance
could change your plans. A good credit score means you won’t have to pay a security deposit when you establish
utility service in your name or transfer service to another location.