Paying off your debt may be tough. Paying your bills on time may be challenging. Yet these healthy financial habits are crucial to helping you build a good credit score. When you know the advantages that come with it, you’ll soon realize that the rewards outweigh the challenges of building it.

Access to Low Interest Loans

Whether you’re applying for a car loan, a mortgage or business loan, a good credit score gives you better chances of qualifying for lower interest rates and fees. Lenders often reserve low interest for applicants with high credit scores, while those with low credit receive higher interest rates. Thus, good credit makes borrowing money cheaper.

Easy Loan Approval

While a good credit score doesn’t guarantee loan approval, it does increase your chances of getting a loan. Why? Because your credit score reflects your creditworthiness. It shows potential lenders if you have a track record of repaying borrowed money.

Higher Borrowing Limits

Apart from borrowing money at lower interest rates, a good credit score also gives you access to bigger loans. Knowing that you pay back what you borrow on time, banks are willing to lend you more money. This applies to credit cards too. You can enjoy high credit card limits with a good credit score. While a bad credit score could still get you some loans approved, the amount is more limited.

Easy access to rentals

Like lenders, landlords also look into your credit score to check your payment track record. It tells them how reliable you are when it comes to paying rent on time every month. Bad credit may still get you an apartment but your landlord may charge a high security deposit, agree to a short term lease or ask for a co-signer on the lease.

Save money on insurance rates

Insurance companies look into your credit score to assess your risk based on how you handle your finances.. A good credit score lets you pay less for insurance compared to those with lower credit scores.

Save on utility deposit

Utility companies are also interested in your credit score as it tells them if you’ll be making timely payments on your gas, electricity, and water. If your credit history reflects otherwise, you could be charged with a security deposit.

Access to perks and rewards

From exclusive introductory offers to reward incentives, a good credit opens doors to exclusive credit card perks. While this will encourage you to use your credit card, it could also help you improve your credit if you continue to pay on time and keep balance low compared to your credit limits.

Experience the many advantages of a good credit score. Start building yours by paying off your debt. We, at Financial Rescue, can help you with our debt settlement program. Just give us a call and our debt consultants will provide a tailored solutions that align with your financial situation, helping you build your credit and securing financial freedom.