A good credit score can lead to many benefits. These include lower interest rates and higher credit limits. Good credit can also help you avoid paying expensive account opening and security deposits. Below are some benefits. Continue reading to learn how credit can make your life easier. Don't forget about your credit score! Good credit will make your life easier and more affordable! So get started today! Keeping your credit score up will improve your life and your wallet!
Lower interest rates
If you have excellent credit, you can often get a better interest rate than you would otherwise qualify for. This is because those with good credit have made responsible financial decision and kept their accounts in order for many years. Lenders are more willing to lend to those with good credit because they are confident that the borrower will repay the debt. Borrowers with good credit pay lower interest rates. This process is a good way to reduce your debt while still making a good financial decision.
Higher credit limits
Higher credit limits are a good thing. It can help you have more spending power. You also get better rewards when you use credit cards. This type of credit card is great for convenience and rewards, but you should make sure to keep a good emergency fund as well. If you are unsure about your spending habits, you can check your credit score with Finty, a free mobile app.
Avoiding costly account opening fees
Good credit does not necessarily mean that you have to open a high-interest account with a fee. It doesn't matter if you have outstanding credit. However, you can avoid having to pay a high opening fee by looking for a bank which does not require you to make a minimum deposit. Also, be sure to choose a bank that does not charge any ongoing maintenance fees. These fees can cost you hundreds of dollars each year. Avoid these fees by looking for banks that do not charge a minimum deposit nor a monthly fee.
Retire costly security deposits from new accounts
If you are able to avoid making costly security deposits on new accounts, you can establish credit while building your credit history. This type of deposit is equivalent to one month's rent. This type security deposit is vital for landlords. It shows that you are a responsible customer and have made regular payments on your loans or credit cards. You also have good credit if you have no collections on your record.