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People obsess about their credit scores, and for good reason. Having a fantastic credit score can unlock many amazing financial benefits, perks, and rewards, after all. If you don’t realize what a stellar credit score can offer you, it’s way past time to begin expanding your financial knowledge. To get you started, here are eight of the top reasons that you need to have a good credit score:
1. Access Lower Interest Rates
One of the main reasons people obsess about their credit score is because it directly impacts the interest rates you can access when it comes time to get a loan. No matter what type of loan you’re looking for, you’ll almost always get a much lower interest rate if you have a fantastic credit score. If you have a poor credit score, you’ll have to accept higher interest rates while you work on building up your credit, but there is hope on the horizon if you stick to building up your credit using useful tools such as credit builder cards! The more work you put into making your credit score, the faster you’ll raise it to an impressive level!
2. Gain Greater Loan Approval Chances
Speaking of loans, you’ll have a greater chance of being actually approved for the loans you have in mind if your credit score is in good shape. Whether you’re looking for a credit card, a traditional loan, a line of credit, or something more unique, you’ll need a high credit score to feel confident about being approved. Unfortunately, applying for a loan, and being denied, can actually hurt your credit score. For this reason, doing research into what credit scores are typically associated with a loan that you’re considering is highly recommended before you actually apply.
3. Unlock Valuable Rewards
Many credit cards and bank accounts provide valuable rewards and perks to customers who have stellar credit scores. They do this so that they can keep these high-rolling customers within their wheelhouse, after all. If you’re unsure whether or not your current financial resources give out benefits to customers within your credit range, you should reach out and inquire about the situation. Even if you’re not in the reward-tier credit area just yet, you can find out what credit score you should be striving for. Soon, you’ll feel like a VIP when you finally unlock these highly valuable rewards and perks.
4. Gain Better Housing Choices
Even more so than interest rates, people strive to perfect their credit scores in hopes of buying their dream homes. Without excellent credit, getting approved for a home loan can be nearly impossible. Additionally, you can unlock much lower down payments by having a solid credit score. Even if you’re just renting, having a solid credit score is a necessity for getting into the best apartment buildings. In some cases, you might even get lower deposit fees if you have an impressive credit score. Inquiring with whoever you’re renting or buying from is highly recommended due to this fact.
5. Unlock Higher Cash Advances
Cash advances can be incredibly useful, especially during the holiday season. They allow you the extra capital needed to start new hobbies, catch up on bills, and keep your accounts stable, after all. The better your credit score is, the more you can ask for from lenders, your bank, and other cash advance providers. If you have a poor credit score, cash advances are often the only form of loan you can qualify for, but they can help you build up your credit over time in some cases. Credit can be a complicated mistress, but it’s completely worth understanding.
6. Unlock Lower Insurance Rates
Insurance companies actually look into your credit score before giving you a rate. Especially when looking at any type of home-related insurance, adjustors will be going through your credit history with a fine-tooth comb. Many people are unaware of this fact, however, and fail to do the work needed to make their credit score strong enough to unlock amazing insurance rates. The better your credit score is, the more you’ll save each month when it comes time to pay your various insurance premiums.
Perfect Your Credit Score
By being financially responsible, and carefully weighing every loan or cash advance you’re considering, you can work toward perfecting your credit score. When you achieve a fantastic credit score, every aspect of your financial well-being will see massive benefits. Life is simply easier with a solid credit score, so it’s worthwhile to do everything in your power to increase your current credit score number.