Most people think that a good credit score is only suitable when seeking funds from financial institutions. While a good credit score makes you look trustworthy to financial institutions, it does more than that. If you would like to know how to improve your credit score, you can check out the latimes article to read the reviews of various credit repair companies so you can hire the best one for you.
Below are some of the benefits of a good credit score:
Offers More Negotiating Power
A good credit score means you have better chances at negotiating your interest rate on credit cards, loans, and insurance. With a good credit score, you become a good catch for financial institutions; however, if your credit score is low, creditors will be adamant about their interests rate. You will probably pay more interest as compared to others.
This is because a bad credit score means that the financial companies treat you as a high risk client, and thus they charge you a higher interest rate. If your credit score is low or less than what you want and you would like to improve it, you can talk to financial experts about it.
Makes It Easier to Find Rental Houses
Most landlords, especially in decent living areas, use a credit score to determine who they want as their tenants. A bad credit score can limit you to the places to live, especially if the score was caused by eviction or rent arrears. A credit score can enable you to live in the neighborhood of your choice.
Allows You to Get Easy Credit Access
The amount of money you can borrow mainly depends on your credit score and income. A good credit score gives the bank confidence that you can pay back. Some creditors will still give you the exact amount you requested but with limitations. A higher score is like a good investment or security for your future financial ventures.
Helps You to Get Better Insurance Rates
Even though this to many comes out as unfair, a bad credit score will mean paying more on insurance premiums. Insurance companies use your credit history and use the information against you to charge you higher insurance premiums. You may find that you pay lower rates on your car insurance, home insurance, and even medical insurance premium with a good credit score. Fortunately, it works both ways. With a good credit score, you will pay lower insurance premiums.