Best Things About Having a Good Credit ScoreThere is much more to having a high credit score than possessing a three digit number you can brag about. Your credit score equals buying power. The higher your credit score, the more you can purchase. Even when income is constant, a high credit score means you can live in a larger house and drive a nicer car than someone with a bad credit score.
A high credit score is a golden ticket in our credit driven society. Here is a list of the top 10 benefits to having good credit. Don't agree with the list? Vote for an existing item you think should be ranked higher or if you are a logged in, add a new item for others to vote on or create your own version of this list.
The Top Ten
With a good credit score, you can get approved for a lower interest rate on a home that will save you a ton of money. We're talking a few hundred dollars a month which can add up to hundreds of thousands of dollars on a 30 year mortgage loan.
Of course, in today's economy you need a pretty good credit score to get approved for a home loan in the first place. Forget about interest rates, unless you have a decent credit score or a ton of money for a down payment, you're not getting approved at all.
The average American household carries about $10,000 in credit card debt. Making $250 a month payments on a credit card with a 10 percent interest rate, it would take 49 months to pay off the debt and the total payment would be over $12,000. With a 20 percent interest rate, it would take 67 months and the total payment would be almost $17,000. Pretty obvious how much benefit there is to having the lower interest rate you can get if you have a better credit score.
Like home loans but on a smaller scale. Better credit score means a lower interest rate so you either save money each month or commit more money to principal so you can get a nicer ride.
Most landlords will check your credit. If it's not good, expect a big security deposit or to be turned away.
Like an A on a report card, a high credit score just feels good.
Car insurance companies look at your credit score as an indicator of risk. The lower your credit score, the more likely they think you are to wrap your car around a tree so the more they are going to charge you for insurance.
Many employers also look at your credit score. Have a bad credit history and you may be out of luck when it comes to getting hired for that new dream job.
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