4 Ways to Take Advantage of Good Credit

One of the most important scores that you can earn in your life is a solid credit score. While good grades in school are important for graduation and landing a good job, a nice credit score can wind up saving you thousands that you might otherwise have to spend. Here are some areas where a good credit score can really pay off.

Lower Mortgage Rates

While some Millennials are foregoing a home purchase, most people will still wind up trying to buy a house at some point. Those who are considered a big credit risk may not be able to qualify for a loan at all. Prospective borrowers who can barely qualify for a mortgage will wind up paying more than those who have credit scores that are in the highest range. Just paying a percent or two more on a loan that can easily reach six figures will cost many thousands of dollars over a 15- or 30-year period of time. Higher credit scores make you look like a lower risk, so lending institutions are willing to loan money at a lower rate. It’s that simple.

Consolidate Student Loans

Outside of mortgages, student loans are one of the biggest areas of debt for most people. Many students are forced to take out private student loans after reaching the max that’s offered by the government. These loans tend to have much higher rates, and borrowers cannot discharge them through bankruptcy. Those who have good credit are more likely to be able to consolidate and refinance these loans at a lower rate. This will have the double benefit of lower monthly payments as well as less money going to interest each month. Those who are able to maintain their previous payout schedule should be able to accelerate the payoff of these debts.

Take Advantage Of Bank Bonuses

If you have a good credit score, another way to benefit is through bank signup bonuses. These can come from opening up a new bank account or credit card. As long as you pay off your bill in full each month, banks are willing to pay a bonus of up to $500 or more to get you to use their credit cards. This is one way to really accelerate your savings as long as you pay off the credit card each month to avoid interest.

Get Lower Insurance Rates

Those with lower credit scores are looked at as high-risk customers, even in areas where it might not seem like it would matter. Some insurance companies perform credit checks before deciding to insure a new client. Those who are perceived to be a higher risk to the company will have to pay higher rates. This means that a low credit score can hurt you if you choose to own a car because most state require at least liability coverage on a vehicle.

Having good credit can pay off in many diverse ways. These are just four, but there are other areas of life in which a good credit score can help. Paying off at least the minimum you owe each month and keeping your credit utilization at a relatively low percentage are ways that you can ensure that your score improves over time.





Valuable Lessons Travelling Has Taught Me

Although I’m most certainly still the impulsive traveller who started out on his global travels determined to do everything I...
Read More
Valuable Lessons Travelling Has Taught Me

Balancing the Odds Out

Trust me to lure you into a blog post about beer with a title that’s geared more towards the casino...
Read More
Balancing the Odds Out

The Basic Guide to Planning Your Adventurous African Safari

Africa is a truly remarkable destination. However, if you’re planning for your first African safari soon, it could be daunting...
Read More
The Basic Guide to Planning Your Adventurous African Safari

Why You Should Consider A Bigger Tent For Camping

A number of camping enthusiasts would truly find it unusual to camp with a big tent. It would feel like...
Read More
Why You Should Consider A Bigger Tent For Camping

4 Best Places to Grab a Beer in Georgia

Image via Flickr by Flikr If you're trekking through Georgia, be prepared for the hot and humid weather. The sweltering...
Read More
4 Best Places to Grab a Beer in Georgia

First Date: What Every Guy Should Know

A first date can seem daunting. If you are a good guy who wants to do right by a woman,...
Read More
First Date: What Every Guy Should Know

4 Tips For Enjoying Alcohol Without Getting Drunk

We've all been there: we know we have work the next morning but we also really want a glass of...
Read More
4 Tips For Enjoying Alcohol Without Getting Drunk

Learn How To Match Your Beers To The Right Glass

Beer is obviously one of the most popular beverages in the world, and yet very few people understand how the...
Read More
Learn How To Match Your Beers To The Right Glass

5 Tips for Letting Your Teenager Fly Alone for the First Time

Whether it’s due to timing or scoring a deal on a plane ticket, sometimes a solo flight just plain makes...
Read More
5 Tips for Letting Your Teenager Fly Alone for the First Time

Everything You Need to Know About Travel Insurance

Royalty Free Photo Whenever you are planning to take a vacation abroad, one of the first things that you should...
Read More
Everything You Need to Know About Travel Insurance