You have likely heard all about how you should monitor your credit report and try to get the best credit score possible. But it’s not always clear why improving your credit score is so important. If you need some motivation to improve your credit score, this list of five things only people with really good credit can do should inspire you to start working toward this goal today.
1. Good Credit Lets You Save Money With Low Interest Rates
Whether you’re trying to get a credit card, personal loan or mortgage loan, your high credit score can get you the lowest possible rates. For example, a credit card that is offered to someone with a credit score in the 600s might have an interest rate around 20 percent or even higher, while someone with a score in the mid to high 700s could get a rate of 13 percent. Expect that interest rate to be even lower with a score of 800 or more.
According to Ovation Credit, some cards for people who have excellent credit offer deals like zero percent interest for the first 18 months. This kind of interest rate can add up to a savings of thousands of dollars over time, showing you how important a great credit score is if you like to save money.
2.Good Credit Lets You Get the Best Rewards Credit Cards
Another financial perk of having an excellent credit score is the type of credit cards you can get. The best rewards cards are offered to people with credit scores above the mid 700s. Some of these rewards cards give borrowers cash back for every dollar they spend on their credit cards, with higher percentages of cash back in certain categories.
For instance, a good rewards card might offer 6 percent cash back on purchases from the grocery store or 5 percent cash back on travel expenses, such as plane tickets and car rentals. If you have good enough credit, you will have your pick of rewards cards, which means you can choose the card that best meets your needs and gives you the most money back. If you think you could benefit from a rewards card, you’ll need to have a great credit score before you apply. Continue reading “Five Things Only People With Good Credit Can Do | Fix Credit Score”