Best Things About Having a Good Credit Score

There 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.

1) Low Interest Rate Home Loans

“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.”

2) Getting Approved for a Mortgage

“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.”

3) Low Interest Rate Credit Cards

“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.”

4) Getting Into an Apartment

“Most landlords will check your credit. If it’s not good, expect a big security deposit or to be turned away.”

5) Low Interest Rate Car Loans

“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.”

6) Low Car Insurance Premiums

“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.”

7) Better Chance of Getting a New Job

“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.”

8) No Security Deposit on Cell Phones

9) Ability to Get a Line of Credit to Start a Business

10) Boost to Self Esteem

“Like an A on a report card, a high credit score just feels good.”