What Excellent credit can do for you
1. The lower interest rate
The amount of money you are charged for take a loan - be it a car, a house, or anything else - or request a credit card will be lower if your credit score is high. A lender will consider you a good bet to pay off a loan if you have a history of paying on time. So how do you save money? The difference of even just one percent interest on a mortgage of 30 years may be tens of thousands of dollars over the life of the loan.
2. Approval higher limits
The banks will be more willing to lend you larger amounts of money with an excellent score credit. You are also eligible for higher limits of credit cards. This not only helps you have greater purchasing power, but it also allows you to potentially raise your credit score if you do not use a lot of available credit. Using less than 30 percent of your total available credit can increase your score significantly since the use of credit is almost a third of the way your FICO score is calculated.
3. More Awards
Looking for credit cards with the best rewards? You will need excellent credit. Many credit cards that offer the best cash back, travel points and other rewards you need to have a score in the excellent range. Some cards offer hundreds of dollars in bonuses for signing up and spending a certain amount of money within a specified period of time. Get approved for these types of cards, however, requires you to have a favorable credit rating. If you have excellent credit, these are some of the cards with the best rewards.
4. Approval easier to rent an apartment
It is common for landlords to use credit scores to determine if they hire you. It can make owners nervous if they see that you have a history of delinquency on payments or no credit history at all. The higher your score, a more confident owner is usually allowing you to rent because they know that you are more likely to pay on time. It should also be noted that you can still get approved for an apartment with not so perfect credit, however, your landlord will probably ask you to pay a higher security deposit.
5. insurance rates better
Many car insurance companies see a bad insurance score based on credit - a score that is partially based on your credit history - as a sign that you are more likely to file a claim. While your credit score will affect what type of interest rate you get on a loan, low credit-based insurance score can increase your insurance rates for your car, home and other property.
This post originally appeared on The Huffington Post.