8 reasons why your credit score is important -Bright
A healthy credit score can impact all corners of life.
A healthy credit score can impact all corners of life. When managed responsibly, good credit can offer more opportunities and dramatically alter your course in life.
Let’s look at several ways, big and small, your credit score matters.
Good credit often leads to more credit. Once you’ve demonstrated a solid history of good credit behavior, you’re likely to earn more opportunities to borrow.
With good credit, you can access more and bigger loans, which can expand your options on car loans and mortgages. You can shop for more kinds of cars and expect to afford a broader range of housing.
Good credit leads to a faster review process when you apply for loans. For home buying, that includes prequalifying for financing, which can give you a leg up in competitive markets. For other big purchases, like cars, you can approach a dealership with confidence, knowing how much you can afford.
Credit reports are a major factor in landlords’ decision-making. Many expect a credit score of 660 or higher.
When your credit report also includes a history of on-time rent payments and other good credit behavior, you’re more likely to stand apart from other candidates.
Demonstrating you know how to manage your credit and repay your debts can lead some lenders to offer better terms and options.
For example, a good credit score can lead to a mortgage with a lower interest rate, lower APRs on your credit cards and personal loans, and lower fees and penalties across the board.
Along with lower interest rates, some lenders will compete to offer you more credit, adding perks and rewards to attract your business.
Discounts on airlines and with popular retailers, along with cashback programs, are often used to entice your business.
Utilities and insurance savings
Utilities may lower their requirements for security deposits, and insurance providers often discount their rates for customers with healthy credit scores.
More confident employers
For jobseekers, a solid credit history can signal to prospective employers that you’re responsible and reliable. An estimated 29% of employers check credit scores in their review process.
Good credit avoids a potential red flag for employers. It’s also another way to stand out from other candidates.
Good, responsible credit behavior is worth bragging about. Share your rewards proudly, and use your good credit to celebrate others.
The best reward of good credit management is the opportunity to lift and enrich the lives of friends and family.
Looking for a refresher on the basics? Take a look at our brief guide to the fundamentals of credit.
If you’re looking to boost your score, check out a few simple ways to build your credit here.
Bright can help, too. Download the Bright app, connect your accounts, and with your personalized Bright Plan, start enjoying on-time payments automatically. It’s one of the best ways to boost your credit score, and your Bright Plan finds ways to save you money too.
To really focus on raising your credit score, add the Bright Credit Builder — every payment counts toward raising your score. The Bright Credit Builder adds a new line of credit with on-time payments built in — and your utilization is never reported to credit bureaus. The line also helps diversify your credit history, and it never expires, offering long-term stability, especially when other accounts get closed. To get started, download the Bright app, connect your accounts and add the Bright Credit Builder.
Originally published at https://www.brightmoney.co.