Being able
to maintain good credit allows you greater financial freedom and
proves to others your ability to use money wisely. Financial institutions and
other business parties are more likely to cosponsor a negotiation you initiate,
whether you choose to apply for a car loan or want to rent an apartment. There
are other benefits to having good credit you should know about.
Higher Credit Limits
Banks will
lend you more money if you have a credit score over 700. You will pay less in
interest than someone with poor credit, who is less likely to pay back their
loans on time. You're also able to qualify for a wider variety of credit cards,
some of which reward users with high credit.
More Job Opportunities
Even
though there is little correlation between job performance and quality of
credit, applicants who interview with their prospective employer will likely
get their credit history checked. A competent employee with the right
qualifications could be denied simply due to bad credit. Credit
check services for employers can be a
major factor when it comes to security checks, which are required for governmental
jobs or positions relating to business management.
Better Car Insurance
You may
qualify for lower premiums that you're required to pay each month. Insurance
companies determine how much you pay monthly based on your credit history and
will penalize people with lower scores by charging them more for premiums.
Good Cell Phone Deal
Cell phone
providers also check your credit score and choose whether they'll provide you a
contract. With a contract, you're able to pay the monthly bill under a specific
set amount until you pay the total cost. People with lower credit are more
likely to use a pay-per-use card they need to purchase every time minutes start
to run out.
Having good credit has benefits that become apparent when
it comes to major life decisions. You'll be able to make these decisions with
less burden on your shoulders if you show creditors you're smart with the money
you use.
