You don’t need an excellent credit score to live a good life, but it can definitely help you feel better about your financial situation.
If you’ve checked your credit score and don’t like what you see, there’s no better time than now to take action. Here are a handful of benefits that come along with boosting your score into “excellent” territory:
• Lower interest rates. Are you applying for a car loan? What about a mortgage? A lower interest rate is always better, and you have a much better chance of securing it with an excellent credit score.
• The power to negotiate. With poor or average credit, you’ll be happy if you can find a lender willing to do business with you. As a result, you don’t have much negotiating power. However, if you have excellent credit, you’re in position to compare a variety of lenders with the idea of securing the best possible product for you.
• The opportunity to borrow more money. This isn’t always something you need, but an excellent credit score makes it easier to get approved for higher limits. For example, this could come into play when requesting a credit line increase.
• Save money on car insurance. Did you know that most car insurance companies review your credit score when you complete an application for coverage? A low credit score doesn’t necessarily mean you won’t be offered a policy, but it can result in a higher monthly premium.
• Avoid security deposits. It can be frustrating to be asked for a security deposit when activating utilities or shopping for a cell phone plan. With excellent credit, this never comes into play. Instead, you’re trusted to pay your bill in full and on time.
These aren’t the only benefits of an excellent credit score, but they’re among the most important. If these get you excited, it’s time to review your score and search for ways to take it to the next level (unless you’re already there, of course).