You probably don’t know the full extent of what you can do with your credit score. It’s a powerful metric which measures how financially responsible you are. With this number, companies, institutions, and organizations can decide what you qualify for, and whether you deserve perks.
Think of it like a membership card which gives you better benefits the better your score.
However, the one difference between your credit score and a membership card is the vast impact it has. Here are 10 things you didn’t know you could do with your credit score.
10 Things You Can Do With Your Credit Score
1. Lower Credit Card Interest
The most direct benefit of a great credit score is lower credit card interest. Your credit card company will check your score before they issue you a credit card. If it’s good, you’ll get lower interest rates for all your purchases. You’ll also get an overall lower annual percentage rate (APR).
A good credit card also works if you want to apply for a new credit card or update your existing one. You’ll be rewarded for making timely payments and maintaining lower debt.
2. Higher Chances of Loan Approvals
Not only will you get better rates for credit cards, but you’ll also get better chances of loan approvals. If you’ve ever been denied for a loan or a credit card, you know how hard it can be. However, with a good credit score, a bank or lender will not think twice about lending you money.
3. Get More Negotiating Power for Loans
You can actually negotiate better loan terms for yourself if you have a good credit score. This doesn’t just result in a better interest rate, it also results in better loan terms. For example, you can negotiate the rate of payments, the total timeline of payments, and even gaps.
If you have a good enough credit score, you can probably lower the interest rate to zero interest in some cases.
4. Maximize Your Credit Limits
One of the best things you can do with your credit score is negotiate for a higher credit limit. Since you’ve proved your financial responsibility, you can follow up lower interest rates with a higher credit limit.
This higher credit limit will in turn, work for you when you want to get a bigger loan, either from lenders or banks.
5. Better Insurance Rates
With a good credit score, you’ll be marked as financially responsible by both banks and insurance companies. This means you’ll be able to get better insurance rates on everything from house insurance to car insurance.
Insurance carriers use your credit reports to decide whether or not your application can be approved. However, a good credit score means that your insurance premiums will go down. When you’re renewing your policy, you’ll be able to get better rates still if you keep up your score.
Basically, and insurance company can show off your credit score to other lenders and borrowers. That way, they can leverage those numbers to get better loans and deals for their clients.
6. Get More Housing Options
When you have a great credit score, you’ll have more to choose from when it comes to housing. A higher score means you’re more likely to pay your rent or mortgage payments on time. Hence, you can have wider choices of homes and apartments when you’re shopping for your next residence. This goes for both renting and buying. Landlords and realtors will give you better choices for what you can afford depending on the score.
7. Get a Smartphone Without Security Deposits or Prepayments
In most cases, when you buy a smartphone on contract, you need to put down a security deposit or a prepayment. With a good credit score, there is a chance that you don’t need to. Good credit can help you avoid other costly fees as well. You can simply pay the base rate and walk away without contributing anything else.
8. Utility Services Perks
Did you know that your credit score even applies to getting utilities at cheaper rates? It’s true. When you setup accounts for electricity or internet services, you can get big discounts. The Federal Trade Commission says that a good credit history makes it easier for you to get utility services installed.
Good credit can mean that you don’t need to put down a security deposit for your utility services. With poor or average credit scores, utility services may want you to put down $100 to $200 worth of security deposits to lock in a contract.
9. Make a Good Impression for Potential Employers
What you can do with your credit score doesn’t stop at getting perks or discounts. It can even help you get a good job or a promotion. It’s possible to get a job with a less than perfect credit score as well. However, employers prefer it if they hire someone financially stable and reliable. They may see late payments and bankruptcies as red flags.
It pays to check your credit report before applying for a job. Literally. You can set some plans in motion to improve your credit score and be in a better position to negotiate a salary.
10. Enjoy the Best Perks and Rewards
Finally, one of the best parts about having a good credit score is the perks and rewards. You can get some really great discounts and cash back rewards if you have good credit. You can take advantage of some great introductory offers and incentives as well. Even some higher tier credit card holders can receive invitation to exclusive events or bonus perks. You can even get free gifts and access to online streaming services.
These are some great benefits and all they require is that you are financially responsible. It’s a small price to pay for all these perks and bonuses. Plus, being financially responsible means that you can reach all your financial goals faster.
If you have a good credit score already, why don’t you try some of these perks right now? If not, then set a plan in motion to improve your credit score right now!
