A high credit score is an asset you shouldn’t underestimate. Not only can it save you money, it can also spare you a lot of hassle. Having a low score is like running the Boston Marathon with a broken foot. It’s hard, but not as hard as running it in peak condition.
Low interest rates
One of the biggest pros of having a high credit score is that it means you will be able to get better interest rates on loans. This is great news because the lower interest rate you get on your loans will mean less money that you will have to pay off. The lower interest rates also make managing your debts much easier. When you have a good credit score, you should be able to get lower interest rates on any loans you apply for.
Having a high credit score also means that you’ll have access to more favorable interest rates. This is because you’ll be seen as a lower risk to lenders, which means that your loan will probably be for a longer period of time. There are two types of interest rates: fixed and variable. Variable rates are linked to an index, so they can change as the index changes.
Another benefit of having a high credit score is that you will have access to elite cards and discounts. These cards often come with exclusive benefits, like airline miles and retail discounts. Some even offer concierge services and access to airport lounges. In addition, high credit score holders will have lower insurance rates.
When looking to make a major purchase, it’s important to consider your credit score before signing any contracts. Having good credit is like a backstage pass. You’ll get to enjoy VIP perks and access to higher-quality products and services. Experian’s Rod Griffin, director of consumer education, explains more about these benefits of good credit.
Another benefit of having a high credit score is access to credit cards that offer lower interest rates. Credit cards come with different terms and conditions, and it’s important to call the credit issuer and ask for lower interest rates. You can also ask for higher credit lines, which will help you maintain a good credit utilization ratio.