Although having a good credit score provides some personal satisfaction, it also offers significant financial benefits. Consumers with good credit can get loans and credit cards more easily. They benefit from lower interest rates and, as a result, may see decreased insurance expenses.
Is your credit score on the high side? If not, you should make a concerted effort to do so. Here are the top three benefits you’ll get if you do:
Psychological Benefits
The psychological advantages of having good credit cannot be overlooked or underestimated. If you don’t have it, any time you apply for credit, you’ll face a series of potentially humiliating situations. And that’s just the beginning.
Bad credit can lead to a pile of issues that aren’t immediately apparent. If you have bad credit and are financially unstable, you will most likely suffer from unnecessary stress and frustration. On the other hand, you will feel financially comfortable if you have good credit. Having positive credit gives you self-assurance and security in the event of an emergency. Moreover, it will put you in a better bargaining spot when it comes time to buy a car, home, or a personal loan.
Good credit makes a significant difference in both your professional and personal lives. If you need to rent a house or an apartment, having good credit would make it easier to get accepted. As we saw in the previous example, being eligible for a mortgage loan application is better, with a potentially lower down payment and a more affordable interest rate that can save you a lot of money over the term of the loan. Getting good credit will decide whether or not you get a decent job, as nearly half of employers already check the credit of their potential employees. This may have far-reaching consequences for the rest of your life.
Security and Safety Benefits
Having good credit will also help you save money in the long run like many of our Uptrenders. Fraud has the potential to kill (or at the very least significantly impede) your financial well-being. Credit card companies nowadays are providing credit monitoring services that provide alerts of any activity on your credit report. You’ll find out if anyone is using your identity to open credit cards in a matter of weeks, rather than months or years later, when the consequences may be disastrous.
These credit cards may also offer money-saving benefits such as cell phone insurance and car rental crash damage insurance. When you rent a car, you can rest assured that big reward credit cards can cover the cost of rental crash insurance. For a one-week car rental, this alone will save you over a hundred bucks.
Financial Benefits
Getting good credit has financial benefits that can transform the financial future like some of our Uptrenders. Lower interest rates on loans such as car loans, and credit cards are only a few examples, as well as better rates on car leases and mortgages, to name a few. The disparities in auto insurance premiums between those with good credit and those with bad credit can be startling. According to the consumer website NerdWallet, drivers with poor credit pay an extra $1,270 in auto insurance premiums each year on average across the nation. Throughout ten years, this equates to about $13,000 in savings.
Credit card rates and limits are also influenced by good credit. With good credit, you’ll be able to get credit cards with better rewards and higher limits, as well as lower interest rates on balances carried over. If you have good credit, you will be approved for new credit cards with higher limits. It could mean getting access to 0% APR balance transfer deals from credit cards. Aside from these balance transfer deals, you might be able to refinance your current loans (such as car loans and mortgages) via banks at lower interest rates.
Having good credit will also help you save money on cell phones and utility services. When you apply for a new cellphone contract, the phone provider will run a credit check on you in the background. If you have a good credit score, you will be able to get a mobile phone without having to pay a large security deposit. When you apply for utility services, they will also check your credit to see if you need to pay a security deposit. These security deposits are more than an annoyance; they drain your savings and reserves while paying no interest.
The investment opportunities available to people with good credit are also limitless as it opens opportunities. As you can see, this has an effect on anything from how much money you’ll spend to finance a house or a vehicle (for years or even decades) to whether or not you’ll be able to compete for a decent job.
Look at quick and easy ways to get and develop the good credit you’ll need to live your best life and make the most of your future.
Key Takeaway
Having excellent credit has a lot of benefits. But, most all, it offers greater financial alternatives. As a result, you can buy a house, use high-reward credit cards, and get better work and renting options. To top it off, lower interest rates allow you to save more money, which is ultimately the key to getting you to where you want to be financially.
A good credit score and a strong credit history can improve many aspects of your life. If your score is above average, then congratulations! If it isn’t, start working on it right now. Look at quick and easy ways to get and develop the good credit you’ll need to live your best life and make the most of your future. Start monitoring your credit now with Uptrend Credit. They can be reached at (833) 425-0355 or through their social media channels.
