There are several benefits of having a high credit score. From being able to buy more, to receiving more credit offers, and even being able to buy a home or rent an apartment, your credit score matters. These are a few reasons you should maintain a healthy credit score and make payments on open accounts on your credit report.
Not just those high 30% APR credit card offers either! When you have a high credit score, you are viewed as a “worthy” customer. You make payments on time, and credit card companies trust you won’t default. So, they will approve you for higher spending limits, and you’ll receive better credit card offers. You’ll pay lower interest, and many cards will even offer you zero-interest financing, for items you pay off faster. This isn’t the case with low-credit customers.
If you travel often for work, you will be approved and receive offers for mileage cards, or those which offer cashback. So, when you do travel, you can accumulate points for free future travel dates. And, you’ll receive cashback on your accounts. So, the more you spend on these limited-edition or member-only cards, the more you are going to earn when you have a high credit score.
Not only apartment rentals, but also if you run a business and need to rent an office, a higher credit score is very beneficial. You’ll find you won’t be required to put down as much as those who have a low score, you will be approved for rentals with more business offices (of apartment complexes), and you’ll pay less over the duration of your lease because you are a valued and trustworthy renter.
If you need to take out a mortgage, plan on taking out a loan for a car, or other personal loan for any reason, a high credit score is extremely beneficial as well. More often than not you will pay a much lower interest rate than those who have a poor credit score and history. You will also be approved for more. So, you can buy a nicer house, you can invest in the car you really want to buy, or you can spend a little more, without being penalised for it, when you have a high credit score and are looking to buy higher-priced items like a home or a car.
Being a trustworthy borrower has many benefits; these are a few of the many reasons you want to maintain a high credit score. You are viewed as an asset rather than a liability like low-credit borrowers are. And, when the time does come for you to make purchases, or if you are simply getting ready to apply for credit cards, you will find that approval is much easier (and limits are much higher for you), when you have a credit score that is higher than the national average and maintain that credit score over time.