CREDIT REPORT SCORES
Benefits of Having Great Credit Report Scores
- Much better mortgage on houses and refinancing rates. Lenders are not likely to give you a loan with low credit report scores. They are more likely to give a better rate for your home loan when you have a high credit report scores and clean credit report history. You will be their ideal customer when it comes to getting a mortgage or refinancing your home; your high credit report scores wins you points with the underwriting department and lets the bank know that you are a responsible credit borrower. Banks will be competing for your business; it’s in their best interest to offer you the best possible deal available to you.
- Much better credit cards and increased credit card limits. Your borrowing ability can increase greatly when you prove to creditors that you’re a responsible credit card holder and never pay late on bills. You can request a credit limit increase or the credit card company will just increase your limit as you use the credit cards and let you know that you’ve earned this perk. Remember that the ratio balance of your available credit limit to credit used credit limit also plays a role when calculating your credit report score; the lower you balances the higher your score will be.
- Great financing rates on a car or lease. If you’re in the market for a new or used car, you will have some bargaining power with your high credit report score. Most dealers will be happy to offer you lower-than-average financing rates and roll out the red carpet because they know that you will be paying back that loan on time. A clean credit report history tells the dealer that you’re a responsible credit borrower. You can negotiate a better rate and the dealer should be able to lower the price of your car as well.
- Easy vacation reservations or home rental. Planning an extended stay vacation and looking for a rental home? In some cases the rental agency can waive fees or negotiate lower rates based on your great credit report history. Most if not all rental agencies will run your credit before extending a rate. You could end up saving a good amount of money on the rental property with strong credit. Therefore you will have much lower payments.
- Being able to land an apartment. Much like a potential lender or bank, your landlord will want to determine your financial worthiness by taking a look at your credit report. This gives them better insight into how likely it is that you’re going to pay your rent on time every month and how much to charge you. If your credit report score is too low for your landlord’s liking, getting that dream apartment may become impossible. If you’re able to get an apartment with a bad credit score, most landlords will increase the security deposit or request a co-signer on the lease
- 6. Excellent credit card deals. Credit-savvy consumers know that it pays to use reward credit cards as long as they pay off the balance each month. The best rewards cards for people with excellent credit often provide the most attractive rewards points, free gifts, cash-back deals, and low introductory rates.
- More negotiating power. If you’re applying for a personal loan from a corporate bank or a private loan from a privately held financial institution, having a high credit report scores will give you more negotiating power. You will be able to get a higher credit line, lower interest rates, or work out an attractive repayment plan just because you have such a solid credit history. Don’t be afraid to use your credit report score as leverage when negotiating a deal; the lender will consider your ability to pay back that loan on time when qualifying you for a certain amount.
- Getting better car insurance rates. In order to predict potential losses on customers, most car insurance companies factor in credit report scores when determining the price of monthly payment premiums. The better your credit score, the better your monthly payments. You may be turned down altogether if your credit score is too low.
- Being able to get utility services with no large deposit fees or no cosigner. Before taking you on as a customer, a utility company will look at your credit report to get a better sense of your payment history. If your credit report history good enough, the utility company will require you to pay a deposit or ask for a cosigner in which a friend or family member agrees to pay your bill if you fail to. Avoid security deposits on utilities. These deposits are sometimes $100 to $1000.00 and a huge inconvenience when you’re relocating. You may not be planning to move soon, but a natural disaster or other unforeseen circumstance could change your plans. A good credit report score means you won’t have to pay a security deposit when you establish utility service in your name or to transfer service to another location.
- Getting a great job. Though they have to get your permission beforehand, some employers will request to see your credit report as part of your job application. They want to see that you can manage yourself before putting you in charge of others to manage. Red flags like past bankruptcies or frequent late payments will make them not want to give you a job, as they will worry that these financial struggles will distract you from the demands of the job and your managing capability.
- Get a cell phone on contract with no security deposit. Another big drawback of having a bad credit report scores is that cell phone service providers will not give you a contract. Instead, you’ll have to choose one of those pay-as-you-go plans that have the cheaper phones with more expensive plans. People with good credit report scores avoid paying a large security deposit and can get hundred-dollar discounts on the latest phones by signing a contract.
- Bank will let you open up checking accounts. Most banks won’t even let you open a checking account when you have bad credit. So you have to go to a check cashing place that takes half you paycheck to get it cashed. Someone with a great credit report score doesn’t have to deal with that big inconvenience.
To some it all up, when you have great credit you will save on everything you do or buy for the rest of your life. You can always stay ahead of the game by having a great credit report score.
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