What Are the Benefits of Turning a Good Credit Score Into an Excellent One?

credit score

When it comes to big purchases that you will need to finance, such as a new vehicle, your credit score will become a factor in the type of loan offers you will get. Wherever your credit may stand now, there are some benefits to working on improving it and turning it into an excellent score! Here are a few situations where it may be helpful to have your credit in great shape.

Buying a Car

When you are eyeing new cars for sale, qualifying for an appealing financing opportunity may hinge on your credit qualifications. While you might still be able to get financing if you’re teetering around the bare minimum of good standing, having an impressive score working in your favor could be a big plus. With outstanding credit, you may be able to make a smaller down payment or be eligible for lower interest rates.

Getting Auto Insurance

In addition to checking driving records, most personal auto insurance carriers run credit checks when they are deciding whether to insure drivers and calculating premiums. Insurance applicants with credit scores that would be best described as just okay are seen as slightly more high-risk to carriers than individuals with credit scores reflecting a strong track record of reliability and good financial management practices.

Insurers are especially interested in keeping existing clients with solid payment histories along with excellent credit, so your creditworthiness could have an effect on whether you’ll see a rate increase or decrease when it’s time to renew your policy with your current carrier. Ultimately, having a great credit score and avoiding accidents could enable you to rack up sizable savings on your auto coverage payments over time.

Applying for an Apartment

Landlords don’t always take the first applicant that comes along. This is particularly true of competitively priced units that are likely to move fast. To be one of the strongest applicants for an apartment that would be perfect for you, an excellent credit score could set you apart from other prospective renters.

When your score and detailed report show that you’re able to meet your financial obligations consistently, a property owner or management company can enter into a lease with you with confidence that you’ll hold up your end of the agreement. Consider that paying your rent could be a way to boost your score.

Some property management companies as well as individual landlords have begun participating in credit reporting. It isn’t for the purpose of discouraging untimely payments or delinquencies so much as it’s geared towards helping people with credit. By paying the first bill that just about every renter takes care of every month, you could be bumping up your score. Ask property managers if they participate in one of these rent reporting programs with Experian or another credit bureau and opt in if you are given the opportunity.

Start Building Your Credit Score

Ultimately, excellent credit can facilitate easier and more affordable access to important resources, including that new car you need. Continue building your credit and check your score frequently to monitor your progress.

Recommended Articles