Updated: May 13, 2022
There are PLENTY of benefits to having good credit, more than I have the time to list - BUT I will list a few of the basic benefits that actually have the potential to save you thousands of dollars
1: Get better Rates on your Car Insurance
One of the most common areas where the condition of your credit will affect you is when applying for car insurance. You are much more likely to be offered a premium that is more affordable if you look good on paper and have good credit. Insurance companies think people with poor credit will file more claims. Regardless if this is true or not, the fact is that if you have bad credit you will end up paying more for your car insurance. If these things are totally in our control, why wouldn’t we steer the ship in the direction that benefits us most? We’re here to build wealth and secure a sturdy foundation to build our life on. It’s time we gain control of our finances & level up!
Getting a Job
2: Improve Your Chances of Getting Hired
Getting hired for certain jobs can be easier if you have good credit too. They won’t just run your credit without your permission though, a lot of employers will want to run your credit before they even send you an offer. If they run your credit and see you have a history of late payments or you’ve declared bankruptcy they will likely deny you the position.
This is what I mean when I often say credit can affect the quality of your life. Are you reading what I’M reading?? This stuff can dictate what tier JOB you have! You can be held down at a level you so badly want to pass if you do not have good enough credit. That is crazy to me! But, I don’t hate the player or the game. I learn the game & dominate it. You can too. Let’s go!
Renting Apartments and Buying Homes
Another area where having good credit can add value to your life and help you reach your targets is when you are searching for an home to rent or own. If you are a future homeowner or a renter with good credit you will get higher rates of approval for rental and mortgage applications. People with good credit who are looking to buy a house get better interest rates on their mortgages too.
3: Increase Your Approval Chances for Rental and Mortgage Applications
Your landlord wants to know that you will pay your rent on time just like lenders want to know you will make your monthly installment payments on time.
For that reason landlords and rental companies will run your credit when you submit your application. Yet another example showing when you have good credit, you are not only more likely to be approved but because you’re a top-tier candidate, you’ll get to choose a wider selection of options.
4: Get Better Interest Rates on Your Mortgage
Having good credit can make your chances of getting a better interest rate on your mortgage a little better. You have to understand, mortgages are usually massive loans and 1-2% difference in the rate can really be in huge in savings over time. I talk a lot more about this in my Personal Finance For Beginners ebook. With mortgages especially, lenders usually want to lend to people who they think will make consistent on-time payments. If your credit is in shambles, get with me!
Credit Cards and Loans
We use our good credit to acquire income producing assets. We’re leveling up and setting our foundation nice and sturdy! The benefits of good credit don’t just apply to renting and buying property. Good credit can also mean increased chances of loan approval, higher credit card limits, and increased leveraging power.
5: Improve Your Chances for Credit Card and Loan Approval
Many people have a negative view of credit cards and that is understandable. That’s another conversation for another day. But just like with renting and getting a job, an excellent credit score increases your chances for approval for loans and credit cards.
If you’re applying for a credit card or a loan, your credit score will be one of the most important factors the bank looks at when they consider whether or not to approve you.
If you have bad credit or no credit at all you will be looked at as high-risk and will be less likely to get approved for a loan or credit card.
6: Get Approved for Credit Card Higher Limits
Yes, having a good credit score and report can increase your chances of being approved for a credit card or loan it can also help you get approved for higher credit limits, larger loans, and dope ass rewards.
Banks reward borrowers with good credit scores by allowing them access to more higher limits and more options. They will also offer better rewards like cash-back programs, little to no interest rates, or reward points, and crypto to borrowers with good credit. I even have a credit card that offers rewards that can be redeemed towards purchasing a whole vehicle.