Surviving a bad credit score isn’t an impossible fete to go through. But you will realize, along the way, that this is not always an easy task, and it is quite expensive too. Below are a couple of tips from Northcash that you can look into and practice if you wish to reap the full benefits of a good credit score.
- Low-interest rates on loans and credit cards
You may have realized by now that the interest rates that you pay alongside your loans and credit cards are directly tied together. Thus, a good credit score will always get you the best interest rates and vice versa for a bad credit score. You will also realize lower financial charges on your loans and credit card balances with a good credit score.
- Higher chances of getting a credit card and loan approval
For a good credit history, you have a higher chance of getting your credit card and loan applications approved. A good credit score doesn’t automatically mean that your application will be approved, as the lenders will also look into other factors like your other debts and income as well.
- More negotiating power
For a good credit score, you will have more leverage and confidence to negotiate a lower interest rate for a new loan or even on your credit card. Creditors will most certainly not entertain any rates negotiation with you if you have a bad credit score.
- Approval for higher loan limits
By now you must know that your borrowing capacity depends greatly on your credit score as well as income. With a good credit history, you will notice that banks and other creditors are willing to lend you more money since you have proven that you can pay back the loans on time. With bad credit history, you may still get approved for a loan, but the limits won’t be as high.
- Easier approval for apartments and rental houses
These days, many landlords and house owners use credit scores to screen new tenants. For this reason, if you have a bad credit score that came from outstanding rental balances or previous evictions, then your chances of getting into that new apartment falls drastically. A good credit will ease this process.
- Good car insurance rates
Insurance companies will also be on your neck if you have a bad credit score. Most insurance companies claim that people with bad credit history are the ones that come back with the most claims to file. For this reason, they will always have a higher insurance premium.
- No security deposit on your new cell phone contract
With a bad credit score, you’re most likely going to have to choose from one of those plans that offer pay-as-you-go services as no service provider will be willing to hand you a cell phone contract. You can get hundred-dollar discounts on cell phones if you have a good credit score.
- Avoid utility security deposits
With a good credit history, you will probably not have to pay up the $100 or $200 utility bill when relocating to a new apartment or home. The opposite goes for a bad credit score.
- Bragging rights
You will realize just how good it feels to enjoy all the privileges that come with having a good credit score. It will be even better if you’ve had to work to get it from a bad situation to where it is now.