According to the team at TexasLending.com, a good credit score can save you hundreds, even thousands of dollars. On the flip side, a bad credit score can cost much more than higher interest rates – it could eliminate you as a candidate for a job.
You may not know how your credit score is calculated, but you actually have more control over this number than you realize, notes TexasLending.com. Here’s some essential information on how a higher credit score works in your favor.
Your credit score is a number between 300 and 850 that measures how creditworthy you are. The lower your score, the higher the bank’s risk in lending money, so the more you’ll pay. For example, a person whose score is 570 typically pays higher percentage points for a mortgage than someone with a score of 730, says TexasLending.com. Paying higher percentage points can cost you hundreds of dollars extra each month.
Having great credit also means getting loan and credit card approvals faster. In many cases, the approval is instant, and TexasLending.com explains that higher credit scores often lead to better terms from creditors who want your business. For example, with good credit, it’s much easier and cheaper to buy a house.
Even if you’re looking to rent a home, having good credit is crucial since most landlords make decisions based on the applicant’s credit score.
When it comes to hiring, managers often rely on credit checks to determine a job applicant’s character and financial habits. According to TexasLending.com, a good score can mean “green light” to getting the job you want.
If you’re in the market for a new car, good credit not only allows you to get approved for a loan, it also opens the door to get that loan with a lower interest rate.
The above benefits are just a few examples of living a better financial life, thanks to a good credit score.