Top 7 Benefits Of A Good Credit Score

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If you have a bad credit, it’s not you can’t survive, but trust me surviving will not be easy and definitely not cheap. Most of the people think a credit score is just a number on the paper, but in actuality, it is more than that. Well, I won’t be wrong in saying that it is a door to opportunity, from buying your dream house to getting admission in your favorite college.

If you are looking for the reasons that you should maintain a good credit score, then here are top 7 benefits of a good credit score.

Raise Your Credit Limit

If you are having a good credit score, it will help you increase your credit limit. When you are making timely payments, you are increasing the confidence of the bank on you. When your credit score increases, you qualify for more credit along with other additional services offered by the bank. This really comes handy whenever you need large loans.   

Low Financing Rates On A Car Lease

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If you are in the market to buy a new car and you are thinking of leasing a car instead of buying, you might be having exceptional bargaining skills when you show off your high credit score. Some lenders will offer you better financing rates because they trust you that you will pay back the loan on time. When you have a clean credit history, the dealer will be able to trust you as a responsible borrower.

Let us assume, you are not good at negotiating, chances are that the dealer might reduce the price of the car instead. And don’t forget your insurance company; the moment they run you VIN number in their system along with reviewing your insurance package, chances are that you may be able to get impressive rate because of your impressive credit.  

Easier And Quick Loan Approval

When you have a good credit score and you apply for a loan, you have better chances of approval as compared to someone with a bad credit. Though this is not the only thing that your bank will consider while sanctioning your loan, but this is an important one.

It is quite easy to get approved for different forms of credit when you have a decent credit score including – personal loans, home loans, credit cards, and vehicle loans. Further, when it comes to commercial leases, borrower’s credit score does play a pivotal role as the owner of the property has to ensure that the company is capable enough to make timely payments, every time.  

Cheaper Utility Services  

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Before any utility company take you on as their customer, they will scan your credit report thoroughly. In case your payment and credit history is damaged, the utility company may ask you to pay a deposit for your service, usually the cost is on a higher side.

Considering the fact that most of the consumers pay service connection fees and various other charges, you may have to pay extra money just to have electricity in your home. When you have kept your credit history clean, the utility company will trust you as a reliable customer and your deposit fee will also be waived off.

Better Job Opportunities

While you are applying for your favorite job, the employer may ask you to reveal your credit history during the application process. This is especially true when your job includes handling money or accessing financial details. During the whole process, missing payments and bankruptcies are two main red flags which shows that you are untrustworthy and irresponsible. This can also make your employer to think that you will not meet certain demands of the job.

But, on the other hand, if you have a good credit score, the employer will see you as a financially responsible & dependable individual, thus increasing your chances of getting the job. Your credit score will show how responsible you are; therefore, it is not just important to get a new credit card but it also affects other aspects of your life as well.

Helps You In Having A Cell Phone Contract

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If you have a bad credit, cell phone service providers will refuse you to give you a contract. Instead, you will have to settle with those pay-as-you-go plans and you must be aware of the fact that such plans have more expensive phones. But, if you have a good credit score, you don’t have to pay a security deposit and above all you will be offered some of the best discounts on the some of the best & latest phones by signing a contract.

Better Negotiating Power

With a good credit score, you are in a better position to negotiate a lower interest rate for your credit card or loan. By mentioning your credit score, you are sending across a message that you are a good risk and in turn to get your business, they will often show interest in negotiating a lower interest rate to bring you in.

Author Bio

Sophia Jones tries to live her life like the sun – setting her sights high and vowing to always rise up again. Always game for an adventure, Sophia loves widening readers and her own expectations of our vast, beautiful world. As a journalist, Sophia writes to inform. As a creative writer, Sophia strives to inspire. Overall, she hopes to captivate. She currently writes for paisa.co on credit cards, banking, insurance and investing etc.

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