5 Things You Can Enjoy With A Better Score

Imagine being able to finance your dream home. Accessing a credit card with exclusive deals and perks. Paying lower interest rates on car loans, credit cards, and more. 

A good credit score can help make all of this possible. 

You may already know that having a great credit score gives you financial peace of mind. What you may not be aware of, however, are the significant perks that come with maintaining a solid credit score.  

The average FICO®score has hit an all-time high. That means more people than ever before are enjoying the perks that come with good credit. 

Maybe you’re interested in increasing your credit score. Or, maybe you already have a great score and are wondering how you can fully capitalize on it.  

No matter where your credit stands, understanding the benefits of a good score is key to consistently improving your credit over time. You have to always have the end goal in mind. Here are 5 things you can enjoy with a better credit score: 

1. Easier credit card and loan approval 

Lenders decide whether to approve you for loans based on your creditworthiness, or the likelihood that you’ll repay the debt on time and in full. Having an excellent credit score greatly increases your chances of being approved for a new credit card or loan.  

Although your creditworthiness is not the only thing lenders take into account when you apply (they often look at factors like your income and debt as well), having a great credit score proves that you are financially responsible with the money you borrow.  

While it’s possible to be approved for certain types of loans with less-than-perfect credit, lenders and credit card issuers are much more apt to approve applicants they believe are most likely to repay them. In fact, lenders are so eager to work with applicants with good or great credit that they often offer better rates and terms. 

2. Lower interest rates 

Having a great credit score doesn’t just increase your likelihood of being approved for credit cards and loans—it also means you’ll qualify for better interest rates, which can save you a pretty penny in the long run. 

The interest rate you end up paying on a loan or line of credit is often tied to your credit score. From credit cards and car loans to mortgages and more, having an excellent credit score may likely mean paying less for the money you borrow. 

Say you and your friend each take out a $200,000 mortgage. You have a FICO score of 780 while your friend’s score is around 620. According to Informa Research Services, you may end up paying $65,000 less in interest than your friend, thanks to your excellent score. 

3. Better loans and credit cards 

With great credit comes great responsibility: you have the power to choose what type of loan you want and to take it out on your own terms. 

When you have a low credit score, on the other hand, your pickings are much slimmer. Because many lenders are wary of high-risk borrowers, you’re unlikely to qualify for more competitive options. Instead, you’ll have to search for credit cards and loan products aimed at higher risk borrowers such as secured crdit cards and secured loans. 

With an excellent credit score, not only will you have access to the best credit cards and loans, you’ll also be able to enjoy exclusive perks, such as cashback and travel points. Now that’s making your credit score work for you! 

4. More control over where you want to live 

Looking to ditch your tiny studio apartment for a newly updated rental? How about securing a mortgage on your dream home? Chances are, you’ll need a decent credit score to achieve these goals. 

If you’re a renter, many landlords will use your credit score to determine how financially responsible you are and, therefore, how likely you are to pay rent on time each month. With a good credit score, you’re not only more likely to be approved—you may also save money with a lower security deposit. 

Additionally, like other lenders, mortgage lenders will consult your credit score when deciding whether you’re a high-risk borrower. (As a bonus, having a higher score will also mean qualifying for a lower interest rate on your mortgage!) 

5. Your dream job

You probably didn’t expect your credit score to help you get a job, did you? 

Companies want to see that their employees are diligent and responsible. While you’ll need to give them permission to do so, some prospective employers may request a credit check to help determine your (financial) responsibility.  

Certain red flags—like frequent late payments or bankruptcy—may cause concern. With a great credit score, however, you’ll have one less thing to worry about on your way to nailing that interview and getting the offer you deserve. 

What can a better credit score do for you? 

Increasing your credit score opens you up to a number of financial opportunities. It can even expand your possibilities when searching for a new home or pursuing your career. But you may be left with some questions. What’s a good credit score? How can I improve my score? 

We’re here to help. From understanding your credit report to giving you the run-down on some suprising things you didn't know about credit. Personify Financial has the resources you need to achieve (and maintain) financial well-being. 

With the right knowledge and tools, you’ll be able to earn your best possible credit score and enjoy all the benefits that come with it.