9 Reasons for a good credit rating or FICO score

Does my credit rating really matter? That question goes through a lot of people’s heads as they max out their credit card or don’t pay their automobile payment for a couple months. It definitely and most certainly does! The benefits of having a good credit score can be very rewarding and fulfilling. You might be asking yourself, what exactly is a good credit score? Well, the average rating for people in the US with a debt below the national average is 695. I will go over nine things that you can benefit from, by a positive credit score rating.

1. Borrowing Money from a Lender
Obviously one of the main things that most any potential lender will look at will be your credit score. If you have good enough credit then the lender will have no problem giving you almost anything you wish with a very little interest rate. They do this because the better credit you have, the less of a risk you are to that particular company. Those with bad scores are likely to be reluctant to let you borrow anything because they will take your ‘bad track record’ as a possible threat to you not paying their money back. One thing lenders do not want to take chances with is their money. Always keep that in mind.

2. Renting an apartment
Next, landlords also may be more willing to be lenient with you if you have a very good credit rating. They check your credit score when you fill out a rental application because they like to know what kind of people are going to be living on their property. On the credit report it shows if you are gainfully employed, if you have ever been evicted, and if there are any delinquent late rent payments of any kind. Having good credit can mean the difference between homely and homeless!

3. Employment Purposes
Also, employers of all kind would rather have a person in good standings with the credit companies to work for them. Wouldn’t you? Of course there is some information on your report that employers look at for a prospective employee. They like to see if your credit card bills are way maxed out, and if it is, they might assume that it will hinder your performance on the job. It also might list liens, mortgages, and bankruptcies. Additionally, it will even have the name and addresses of your previous employers. But, over all, they just like to see how responsible of a person you really are. Reliability and responsibility are key benefactors of maintaining a great credit record.

4. Lower Insurance Premiums
Insurance companies have also recently been granted access to check your credit report as well. A large benefit of people with a good rating is a much lower insurance premium. Yes, you can save even more money by just being responsible! They think that the way you handle your credit will be a good idea of how responsible you will be with them. Even if your credit is bad, if you can manage to bring your score up, then you will also get a drop in your insurance costs.

5. Cell Phone
Cell phone companies may look at your credit rating. Most people have no idea what exactly is inside their credit report folder. If you have a good credit score you won’t be required to pay a deposit on a new cell phone contract. This can mean the difference between hundreds of dollars! However, those that don’t pay their bills on time are subject to negative strikes and blemishes on their credit records.

6. Purchasing a Car
The first thing automobile dealerships do, when you are interested in buying a new car is pulling your credit report. Having hardly any marks against you can drastically decrease the amount of money you pay on your lease, or your car payment every month. Also, they check for any repossessions of any kind. Good credit holders may also pay a lot less interest rate on their purchases than others.

7. Getting good Credit Cards
Credit cards seem to be the way of the future and cash money seems to be phasing out. Wouldn’t it be nice to have the nicest, best looking, and powerful credit card you can possibly get? Well, if you have a credit score over 780 then it’s not just a dream. There are new credit cards out now for people with outstanding credit that basically can get you anything you could imagine. These cards actually have no interest, annual fee, or even a limit! But be careful, they can get you in trouble. The main key is just being responsible.

8. Background Tests
You may sometime in your life, for any apparent reason, be asked to take a basic background test. Background tests can be for a variety of different things, ranging from military reasons to health and professional inquiries. These tests can show anything that’s ever happened in your life; from arrest records, traffic tickets, marriages, children, dental, and hospital records, and of course, at the top will be your credit report. People with good credit will generally pass these background tests with no problem at all.

9. Respect
Having a good credit score means more than just having it on paper. You can get special treatment if people see that your an outstanding and responsible citizen. People also may be able to trust you more, as they see your not prone to taking advantage of things. Also it gives you a feeling of well being and goodness to be in good standings with one of the most important agencies in the world.

In conclusion, these are just some of the examples that I have given that can benefit you if you have a good credit rating. I would definitely try and take advantage of these offers that are there for good credit standing citizens. Maybe one day there will be even more factors and benefits to keeping a nice clean slate. The idea behind having good credit is not only trust from lenders, it is also being aware of your responsibility. To learn more about investing and being more financially responsible check out InvestorHow.

Having a Good Credit Rating has many benefits in today’s society. Here are the top 9 reasons why you need a good Credit Rating.

Samual Java is a contributor for InvestorHow