5 Perks Of A Good Credit Score

Having a high credit score carries many benefits

Shaun Plum
MoneyTips Contributor

Credit Rating Borrowing

5 Perks Of A Good Credit Score
August 17, 2016

If your credit score is in the mid 700's or higher, you may often receive preferential treatment whenever your credit is involved. A strong credit score reflects that you are responsible, and will make consistent and timely payments. Here are a few of the benefits you can take advantage of, thanks to your outstanding credit.

1. Better rates. With strong credit, you can often negotiate better rates and get lenders to knock off a percentage point or two from a loan, because your high credit score indicates to the lender that you will pay back the loan on time.

2. Lower insurance premiums. The better your credit score, the lower your premiums are likely to be. Your credit rating can show how likely it is that an insurance company will make a loss on a policy. Not all states factor in a consumer's credit score when it comes to calculating insurance premiums, but many do.

3. More payment plan options. Many lenders, such as your cell phone company, may offer more flexible payment plans if you have shown that you can be trusted with credit.

4. Better credit card rewards and bonuses. Credit card companies may give access to superior bonuses and rewards to consumers with better credit. Some platinum and elite cards are only offered to consumers who have a specific minimum credit score.

5. More job opportunities. Credit can play a role in being hired. Many employers check a candidate's credit report during the application process, especially for upper-level management and executive positions that require more responsibility, especially of budgets.

You can check your credit score and read your credit report for free within minutes using MoneyTips Credit Manager.

Photo ŠiStockphoto.com/Devonyu

  Conversation   |   0 Comments

Add a Comment

By submitting you agree to our Terms of Service
$commenter.renderDisplayableName() | 01.28.21 @ 12:16