It’s no easy task to build an excellent credit score. It takes many years of using your credit, paying your bills on time, and avoiding costly mistakes.
Once you reach this level, don’t just sit back and enjoy the fact that you’re on top. Instead, search for ways to use your excellent credit score to improve your finances and save money.
Here are five top benefits of an excellent credit score:
1. Search for the Best Available Credit Card Offer
With excellent credit, you don’t have to worry too much about qualifying for a credit card. It’s safe to assume that there are several issuers willing to give you exactly what you want.
However, since no two credit cards are created equal, let your excellent credit guide you toward the best available offer.
Are you searching for a top of the line cash back credit card? How about a travel rewards card?
Regardless of what you’re looking for, use your credit score to your advantage.
2. Negotiate Better Loan Terms
From a mortgage to a car loan, you don’t want to sign on the dotted line until you’re happy with the terms and conditions.
With an excellent credit score, it’s much easier to compare loans because you’re a desirable candidate. Every lender is interested in working with you, as they’re not taking on nearly as much risk.
You can use your excellent credit in many ways, such as to negotiate a lower rate. If successful, you’ll save money on your monthly payment, as well as over the term of your loan.
3. No Security Deposit
Is there anything more frustrating than a utility provider or cell phone company asking for a security deposit?
This is necessary in some cases, such as if a consumer has bad credit. It’s one of the best (and only) ways for the company to protect itself.
However, if you have excellent credit, this shouldn’t come into play. If you’re asked for a security deposit, inquire as to why it’s necessary. Your credit score should help you avoid this.
4. Lower Car Insurance Rate
You may not recognize it when shopping for car insurance, but excellent credit will save you money. Here’s an excerpt from Nationwide, one of the largest car insurance companies in the country:
“Nationwide uses a credit-based insurance score when determining premiums. Studies show that using this score helps us better predict insurance losses. In fact, 92% of all insurers now consider credit when calculating auto insurance premiums.”
It’s nice to know that your excellent credit is helping you save on this expense, even if you don’t see it.
5. Easier to Find a Place to Rent
If you’re not interested in buying a home, you’ve probably turned your attention to renting.
Most landlords will take a close look at your credit history and score, as this gives them insight into how you manage your money.
With excellent credit, you’re considered low risk, thus increasing your chance of an application approval. Conversely, if you have poor credit, it could stop you from moving in.
An excellent credit score is sure to give you a financial boost from time to time. If your score is in this category, don’t hesitate to use it to your advantage whenever possible. You deserve it!