Every consumer knows (or should know!) the perks of having a high credit score. A higher score means more purchasing power and an increased likelihood of banks loaning you money. However, there are additional perks of having a high credit score that often go unnoticed. Recently, savvy men and women met in an online discussion to reveal the hidden perks of being so financially responsible.
1. Unexpected Mortgage Perks
When it comes time to buy a house, you'll be able to score some huge savings if you have an excellent credit score. “If you don't have 20% for a down payment on a house, having a high credit score makes personal mortgage insurance (PMI) on the mortgage almost negligible,” explains one new homeowner. “I always thought it would add $200-$300 per month to our payment to have PMI, but since we have excellent credit, it will only be $40.”
2. Access to Premium Credit Cards
Rewards credit cards offer fantastic ways to reap benefits not accessible to other consumers. Premium credit cards take that concept one step further. Enjoying a high credit score means you'll be eligible to apply for high-end credit cards with even better rewards than standard rewards cards offer.
3. More Job Opportunities
A high credit score opens more doors professionally. Unfortunately, as one person found out, the opposite is also true. “Once I took a math test for a really well-paying job at a local company,” recalls one man. “The woman who graded the test said I scored higher than anyone. Then she said they would call me after they ran a credit check. I was financially struggling and never heard from them.”
4. More Credit Card Approvals
Using credit cards responsibly is arguably one of the savviest consumer strategies. Fortunately, higher credit scores naturally lead to more credit card approvals. As a result, anyone with a high credit score can amass tens, or even hundreds, of thousands of dollars in credit if they take advantage of approval offers. Talk about purchasing power!
5. Lower Security Deposits When Renting
Many consumers are shocked at this specific perk of having excellent credit scores. Although it sounds too good to be true, it isn't; many landlords and leasing offices offer lower security deposits for qualified renters. In some cases, security deposits can go as low as $100. That's a far cry from the $2200 security deposit I was forced to pay.
6. Unexpected Rewards From Your Job
It's rare, but some companies don't shy away from rewarding their employees for being financially responsible! “When I worked at Amazon, one of the DSPs (the company contracted to drive the blue vans) ran a competition where the first employee with an 800 credit score won $1000,” one woman confesses. “Not sure how common stuff like this is, but trust me, it exists.”
7. Easier Security Clearance
For specific government jobs, getting the proper security clearance can be difficult. Thankfully, having a high credit score goes a long way in showing the government can trust you to be responsible. Many people cite their low credit scores as why they didn't get the job of their dreams over the years.
8. Lower Car Insurance Rates
Did you know that your credit score can directly influence your car insurance rates in many states? It's true, and it's one of the best perks of being financially responsible. With car insurance rates consistently hovering between “expensive” and “out of control,” no driver will ever say no to a low rate!
9. More Opportunities To Refinance Your Debt
With good credit, you'll consistently be presented with offers from banks and credit card issuers to smartly refinance any remaining debt. That's a great perk! “You will be bombarded with low-interest balance transfer offers from all your cards,” confesses one woman. “I can always refinance any balance at 3-4%, presently, inclusive of the fee. This has been really advantageous over the years because the transfer offers are typically much lower than a personal loan would be.”
10. Buying a New Vehicle Is Easier
Going through the process of buying a new or used vehicle is exhausting. Fortunately, being armed with an excellent credit score makes the ordeal less harrowing. “With a high credit score, you can walk into a dealer, pay $0 in down payment without it affecting the rate, sign on the line, and drive away in a new car without ever having exchanged money or even payment information,” explains one recent car buyer.
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