An impressive credit history can benefit you in ways you have never imagined. Consider being able to access the following:
1. Higher credit card limits
Who wouldn’t want to have an increased borrowing capacity? Upon proving to creditors that you are a responsible holder of a credit card, your credit card limits will rise automatically. Even if the company doesn’t raise your credit limit, you have the option to make a request for the same. It is impossible for your credit company not to honor your application. It is, however, imperative to keep in mind that the ratio of your available credit to what you have used plays a significant role in the determination of your credit score. Besides, earning higher credit limits will add a few more points to your high score.
2. Landlords’ approvals
Nowadays, property owners use your credit score to determine if they will rent out their houses or apartments to you. The better your score, the more confidence they will have in letting you rent. This is mainly because; they tend to believe that you are more likely to pay on time. With good credit, getting the approval of landlords becomes much easier.
3. Reduced interest rates
Interest rates have witnessed a dramatic rise in recent years. This can largely be blamed on the harsh economic times being experienced by the whole world. However, with a high credit score, you have the opportunity to have your interest rates lowered whenever you take a car loan, a house loan or any other type of loan. With a history of timely payment of loans, lenders will consider you a safe bet to repay the loan. This is an excellent way of saving money. How? One may ask. Even a 1% decrease in interest for a 25-year mortgage can translate to tens of thousands of savings – over the lifetime of the loan.
4. Personal matters
Apparently, your luck for love goes up when you have an impressive credit score. It doesn’t come as a surprise that people are looking into FICO scores when vetting their potential love interests. The world population is becoming more independent and liberated. People aren’t jumping into relationships just for the sake of it. They are willing to stay single rather than invest in non-constructive relationships. They want to get married to partners with whom they can buy a home, cover travel expenses and even invest among many other things.
Poor credit scores are interpreted as a sign of irresponsibility and bad financial management skills. Working towards a high score puts you more at ease when discussing concrete future plans with your love interest. Nothing will make you feel more confident than knowing that you have a top-notch credit score.