The Top 5 Advantages of Great Credit

By Caitlin in Credit
The Top 5 Advantages of Great Credit

Most people think that a great credit score only helps to relieve some of the hassle associated with getting new credit and that the advantages are limited to the financial world. If you are one of these people then you need to seriously rethink your credit score strategy as a great credit score could be exactly what you need to achieve those life goals. Here are the top 5 reasons you should get serious about your credit score today.

1. Lower Interest Rates

It’s not a secret that great credit means you’ll probably get great rates on your next loan, but did you know exactly how much your credit can affect your rates? Chances are you probably didn’t know how major your savings could be. A great credit score has the potential to save you thousands of dollars especially is the case of a mortgage. Let’s say you’re applying for $200,000 mortgage, the rate you’re given is 4.4% and the rate someone with a better credit score is given is 3.4%. That 1% difference will save the person with the great credit score around $43,000 over the length of their mortgage.

No matter what kind of loan you’re in the market for, mortgage, car loan or personal loan a great credit score will help you get the interest rates you want and need. Interest rates that are only slightly lower than the average might not seem that important but in reality they could end up saving you a significant amount of money in the long run. It’s in your best interest to start working on your credit score now, your future self will thank you.

2. A Dream Job

Not all companies preform credit checks on potential new employees but some do and it could be the difference between landing your dream job and being pushed to the side for a more appealing candidate. Having the perfect credit report, which is almost impossible, isn’t a guarantee that you’ll be hired but it will show that you’re responsible and potentially have the qualities that the employer is looking for. Employers don’t review credit scores they review credit reports, but the information on a credit report is used to calculate your credit score. They’ll be looking for collections accounts and other issues or problems that have happen recently. Remember, this might not happen to you but it’s always a good idea to be prepared.

3. Opportunity

The house you’ve always dreamed of living in goes up for sale all of a sudden at an affordable price. Someone in your family has to sell their low mileage and well maintained car and you’re in the market for a new one. The perfect location for that business you’ve always wanted to open is now available to buy. Sometimes opportunities just pop up out of nowhere with little to no warning and the best way to be prepared is to have a great credit score to make finding the financing you need just a little bit easier and quicker.

Cash is ok but most people don’t have enough on hand to pay for their dream house and losing out on an opportunity of a life time can be really painful and unfortunate. Your potential lender will use your credit score to make a quick decision about your credit worthiness so that you won’t miss out on the opportunity. If your score is great then you should have no problems being approved for the loan you need.

4. A Happy Marriage

Marital issues and money problems seem to go hand in hand, there have been countless studies that prove is. If two people are in an unhappy marriage there’s a pretty big chance that one of the underlying problems that’s causing stress is money. While you probably didn’t ask your now spouse what their credit score was on your first date, you probably did look for signs of financial responsibility during the first couple of months of your relationship. A high credit score typically means that someone is financially responsible and hasn’t made too many bad choices about their money. Therefore a great credit score could potentially lend itself to a happier marriage. The most important part of a marriage is honesty, so even if you don’t have the greatest credit score it’s still important to be open and honest about it and all your personal finances.

5. A Less Stressful Life

Constantly being worried about money and credit is one of the most stressful things in life and something that most people have to deal with, even though they don’t want to. Consciously making the decision to work on your credit score and improve your financial habits will have a significant and positive affect on your life as a whole.

There are good credit scores and there are bad credit scores, but it’s important to understand that no one’s credit score is perfect and that are endless outside factors that affect them. Try not to compare yourself and your credit scores to other people, not everyone has the same lifestyle. Yes there is a good credit score range and it’s in your best interest to have a credit score that falls within that range, but sometimes it’s easy to get into that range and sometimes it’s hard. Focus on your personal financial situation and work towards that high credit score you’ve always wanted.

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