Why do you want a good credit score?
Most people know that having a good credit score is important, but not many realize just how much their lives are affected by it. The benefits of having a good credit score go beyond just getting approved for a new credit card or store account. It's about confidently applying for a new job, having more options when house hunting, and getting a better rate on your car insurance.
So, when things get tough and you're tempted to spend on credit, remind yourself why it helps to have a good credit score.
Let's take a look at just a few ways that a healthy credit score helps you financially.
You can get good insurance rates
Did you know that having a high credit score could help you qualify for lower premiums?
Become a homeowner
As we know, your credit score plays a big part in whether or not your application to buy or rent is approved. If you plan on buying a new home, or even renting a new place in the near future, then you definitely want to check on your credit score.
Better terms when applying for a loan or higher credit limit
Do you need a loan? Are you thinking of applying for a higher credit limit? The higher your credit score, the better your chances of getting approved for a loan or a larger credit amount. You could also get approved for lower interest rates on different credit products.
Are you convinced?
If you're inspired to get your credit score in tip-top shape, think about adopting these personal finance habits.
- Pay all your accounts on time and in full.
- Aim for a good credit mix.
- Try not to apply for new lines of credit frequently because these inquiries are recorded on your credit report.
- Make sure your credit utilization ratio is low, especially if you’re making an effort to improve your credit score.
Check your credit score regularly. You can download your Credit Report for free here.