If winning isn’t everything, why do they keep score? Vince Lombardi
So you know that having a good credit score is important, or you wouldn’t be reading this book, right? But before I get into the nitty gritty details of how to raise your credit score, I want you to have that all-important shot of motivation ? you need to be crystal clear on why you’re doing this, since that makes it easier to maintain the drive required to follow this through to the end. And besides that, no matter how much we know, there are usually a few new things we can learn ? check your knowledge by going through this list!
Here are the biggest benefits of having a good credit score: 먹튀검증
1. You Can Save Money With Lower Interest Rates on Loans and Credit Cards
The better your credit score, the better the rates you’ll have access to on many credit cards and loan products. Don’t like the posted rate? Your high credit score might be your ticket to successfully negotiating a lower rate!
For example, compare the outcomes of Jennifer and George. Each of them wants to purchase a $370,000 home, with a $70,000 down payment. They each apply for a $300,000 mortgage, to be paid off over 30 years.
The similarities end there though. Jennifer has a credit score of 810 and qualifies for the bank’s very best interest rate of 3.5%.
George has had some credit troubles, so his credit score of 620 means the bank is offering him an interest rate of 5% (that’s a 42% increase!) That doesn’t sound so bad at first glance, but over 30 years, George will pay an extra $93,000 in interest!
Of course, interest rates aren’t likely to stay this low forever. Say rates go up and a good rate is now considered 8%. Let’s run the numbers again. Jennifer gets 8%, and George pays a rate that’s about 42% higher, or 11%. Over the 30-year mortgage, George will now pay an extra $226,000! So don’t be like George.
Here’s the good news, though. Even if you’re starting out like George, you can change things for the better. Work on improving your credit score starting now, so when the time comes to renew your mortgage, you’ll qualify for a sweet lower rate just like Jennifer does.
2. It Will Be Easier to Get Approved for Credit
The better your score, the more that lenders will beg you for your business. There are big bucks to be made off lending people money, and lenders have found that, on average, people with good credit scores are less likely to miss or stop payments on their loan.
Become one of the “good credit score” people by implementing the tactics I’ll show you in this book, and you can enjoy easier credit approvals for years to come!
3. You Will Be Able to Get Higher Credit Limits, Which Can Increase Your Score Even More!
The higher your credit score, the more money (within reason) lenders and credit card companies tend to be willing to lend to you. And the cool thing is, if you leave most of your credit limit unused, your credit score can go up even more than it was to begin with! Current scoring systems reward those who show restraint by not maxing out their lines of credit and credit cards.
4. It’s Easier to Get Approved as a Tenant
Landlords are understandably nervous about renting out their property to a perfect stranger. One of the ways they reassure themselves that all will be fine is to select tenants with a history of paying their debts and other obligations on time. If you have a good credit score, it indicates that you tend to pay your bills on time and sends a signal to potential landlords that you are likely to pay your rent on time too!
5. It’s Easier to Get Approved for a Mortgage
Past behavior is often a good indicator of future behavior, and if you have a high credit score, combined with credit reports that indicate that you manage credit well, you banker is much more likely to agree to give you a mortgage for that gorgeous home you want to buy.
6. You Could Save Big On Your Car Insurance Rates
Surprised? So was I. Because what on earth does your credit history have to do with car insurance, right? Well, it turns out that, on average, people with bad credit cost insurance companies more in claims. So they use credit scores as a shortcut to help them figure out who is less likely to cost them big bucks in claims, and therefore can be offered auto insurance at a lower cost.
7. It Could Be Easier to Get Approved for a Cell Phone Contract
Many, if not most, cell phone companies will insist on running a credit report prior to signing a contract with you. High credit scores are associated with people paying their bills on time, so you guessed it ? cell phone companies love to do business with people like that.
8. You Can Save on Security Deposits for Utility Bills
If you have a high credit score, some utility companies offer to waive or reduce the security deposit that is normally charged to new account holders. This is great since if you qualify for such special treatment, rather than having your money tied up in a deposit, you can invest it or use it for other things that are more useful.
9. It Could Increase Your Odds of Landing a Job
Believe it or not, some employers check the credit of potential employees! So this is one more great reason to maximize your credit score! Particularly if you are applying for a job that involves access to large amounts of money (for example, in banking), or if you are in management, employers may want to know if you manage credit responsibly. Many employers see the degree to which you are responsible with credit as corresponding to the degree to which you’ll be responsible with your job.
I cannot trust a man to control others who cannot control himself. Robert E. Lee
Improve Your Score Now, and Benefit for the Rest of Your Life
So I get it ? if your score isn’t great now, you may feel depressed reading about the benefits of a good credit score. But here’s the thing ? just because your credit score is low now, doesn’t mean it has to stay that way. With the simple techniques that I’ll teach you in this book, you’ll learn how to increase your score over time, so that you, too, will benefit from everything I discussed in this chapter. And if your score is already decent, remember that the more you increase it, the better the benefits that you’ll have access to over time. For example, say your credit score is good enough to get a small discount on your next loan ? if you increase it, maybe you’ll qualify for triple the discount next time.
Before I go on to the nitty gritty of increasing your score, it’ll help you to understand exactly how credit scores are calculated, plus learn some of the lingo that is used in the credit scoring industry.