Your credit score is just a number, right? I mean, how important can it be to your finances?
You know what else is just a number? Your bank balance, the amount you owe in debt, how much income you earn, and even at what age you’ll retire!
In fact, your credit score is more important than ever for nearly every aspect of your finances.
To prove it, we’ll cover ten things that you’ll get with a good credit score:
1. House
So, you finally want to achieve the American Dream by owning your own home? Well, if you’re like most people, you’ll need to obtain a mortgage to buy that home, and a good credit score will vastly help you qualify. In fact, the higher your score, the more loan options will be available to you and the lower your interest rate generally will be. The good news is that there are loans, like those guaranteed by the FHA, that can help lower-credit borrowers, but a high FICO will definitely come in handy.
2. Lower credit card interest rates
The average credit card interest rate in the U.S. is now around 14.99%, but that climbs to a lofty 24.9% when we look at credit card holders with lower credit scores. We’re also spending a LOT on our credit cards again, as the U.S. balance is now approaching $1 trillion! Increase your credit score and you’ll start saving significant money on your credit cards, almost immediately.
3. Business, personal, school.
Are you starting a business? Taking out a personal loan from the bank? Or even applying for student loans (which is now higher than both credit card and auto debt in the U.S.)? If so, a great credit score will be a huge help along the way.
4. Renting
Even if you can’t afford to buy your own home, you’ll have to live somewhere, and that means renting. As part of the initial application, you better believe that landlords check credit score these days for prospective tenants.
5. Lower insurance premiums
A lot of people don’t realize this, but insurance carriers actually cross reference credit scores of their policyholders (along with plenty of other factors) and assign higher premiums to those with low scores.
6. A better budget
If your credit score could magically go from 550 to 750 (and it CAN – it’s just not magic), you’d realize some incredible savings across most line items on your monthly budget. Add it all up and that savings could come to $100, $250, or even $500 a month!
7. Favorable utility and cell phones
Yes, even your utility providers check your credit score now, as they look to avert defaults. If you’ve walked into a cell phone store and asked to open an account then you know that the AT&T, Verizon, and others check credit, too.
8. More savings + less debt
With that new and improved budget, things are finally turning around for you financially. With extra disposable income every month, you can now afford to put some aside for savings every month and, most importantly, start paying down your debt. That’s when you REALLY start realizing more money in your pocket.
9. Dream job
Wait, a good credit score can get me a job? Well, not necessarily, but a bad credit score can certainly ruin your chance of landing your dream position! In fact, more than half of all employers do credit checks on their applicants these days and some, like in financial services, definitely will want a clean credit history and solid score before inking you to a new employment contract.
10. Financial security
Lower credit card rates, becoming a homeowner, paying off debt, saving for emergencies, and landing a new job all mean one thing: you’ve finally broken through the frustration, hard times, and penny-pinching that your low credit score brought. Studies show that consumers with good credit scores have a net worth that’s roughly 12-times that of low-scorers, and that’s no accident!
Are you ready to get these ten things a good credit score will bring you? We’re prepared to help with a free credit report and consultation, so contact us today!
