49°F
weather icon Mostly Cloudy

Seven benefits of improving your credit score this year

This article first appeared on GoBankingRates.com on Jan. 12.

No doubt about it, having good credit keeps more money in your pocket and gives less to banks, credit card firms and other creditors.

Even so, many Americans don’t know their own credit scores, and that can be a big omission for consumers who otherwise could be benefitting from good credit.

A 2013 survey from the Consumer Federation of America and VantageScore Solutions found 40 percent of U.S. adults don’t know credit card issuers and mortgage lenders base credit decisions on consumer credit scores.

The moral of the story? Don’t let that happen to you. Knowing your credit score is an all-important first step in establishing good credit, and having good credit means enjoying the following seven personal financial benefits.

7 Reasons It Pays to Have Good Credit

1. You’ll get speedier loan approvals

Having great credit means getting loan and credit approvals faster. Once retailers, financial institutions and other creditors see your solid credit, you’ll get approvals for loans and credit instantly, in many cases.

2. It’s easier to purchase a new home

With good credit, it’s much easier (and less expensive) to buy a house. You’ll get approved for a loan faster (see above) and you’ll pay less in interest rates attached to a home loan with good credit. Even a reduction in interest rates of 1% or 2% can mean thousands of dollars in savings on a home mortgage.

3. You can rent the house you want

If you’re renting a home, having good credit separates you from other renters looking at the same home or apartment. Landlords often make decisions on who gets to rent from them based primarily on an applicant’s credit score.

4. You can land your dream job

These days, hiring managers are increasingly relying on credit checks to determine a job applicant’s character and financial habits. A good score can be a “green light” to getting the job you want, with better perks and more pay.

5. You can get an auto loan

Good credit not only allows you to get a loan for a new car, truck or SUV, it also allows you to get that loan with a lower interest rate. Creditors are all about risk, and they charge more (via higher rates) for borrowers they deem to be a higher risk. In short, the better the credit score, the lower the risk and the lower the interest payment.

6. Get a credit card

Credit card providers like American Express, Visa, MasterCard, and Capital One will be much more likely to give you a credit card (with a higher credit limit and a lower interest rate) if your credit is sterling. If not, you might have to make do with a pre-paid card or a secured card, with an upfront deposit, lower credit limit and higher interest rate.

7. More negotiating leverage

With a higher credit score, you can negotiate with credit card companies, banks and retailers for a lower interest rate, thanks to your strong credit. That gives you more bargaining power, and often leads to better terms from creditors who want your business. If you do not know your score, I recommend using CreditRepair.com’s Score Estimator. It will give you a free estimated score, based on ten quick questions regarding your credit usage.

The above benefits aren’t the only examples of living a better financial life with good credit, but they’re certainly at the top of the list. It’s a list you’ll want on your side throughout your life — and it’s all possible thanks to great credit.

Brian O’Connell is a credit expert with CreditRepair.com. O’Connell boasts 15 years covering business, as pertaining to the health care, career management and financial sectors.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Fugitive who fled after woman’s attack found hiding in travel trailer

Ryan Sanders, 37, of Pahrump,who fled from authorities following the kidnapping and brutal attack of a Pahrump woman last week has been taken into custody by Nye County Sheriff’s Office deputies and assisting agencies.

2 cannabis lounges OK’d for Nye

KV Group LLV and GGCPA SE Inc. both plan to launch local lounges, where adults will be allowed to smoke, vape and consume cannabis products onsite.

Nascar tickets up for grabs at Bowl-A-Thon

This Sunday, the Pahrump Nugget Bowling Center will be taken over by supporters of America’s heroes during the Wounded Warriors Bowl-A-Thon and event organizer Denise Flanagan is excited to announce the addition of an extraordinarily generous donation to the cause.

Here are the plans for Front Sight firearms facility

When Front Sight Firearms Training Institute filed for bankruptcy in May, many feared that would mark the end for the nation’s largest firearms training center. But the site is expected to be revived under new ownership.

Nye County tribe faced voting barriers this election

The Yomba Shoshone Tribe had difficulty getting an in-person polling location for the 2022 midterms. Tribes across Nevada and Indian Country face barriers in accessing the voting booth.

Bowl-A-Thon to benefit Wounded Warriors

Hosted by local veteran Denise Flanagan, all of the money raised at the Bowl-A-Thon will be donated to Wounded Warrior Project, an organization that supports veterans.

It’s time to light the tree!

Here’s what you need to know as Pahrump prepares to illuminate its annual Christmas tree.