A credit score between 750 and 800 shows that you have a distinguished history of paying your bills on time and are able to handle different types of credit responsibilities without breaking a sweat. Borrowers regard you as a person with excellent credit history and with lenders, employers and insurance companies you will get the similar perks. Yes, that is true. A high credit score can make you eligible for amazing perks and loans. So if you were thinking about missing a credit card payment or two here and there, think again.
Paying your bills on time, clearing up errors in your credit report, and paying your credit card balance as soon as possible can really help you diligently set yourself up as a person with a high credit score. Although you can survive with a less-than-stellar credit, when you are moving to a new city or even getting a new mortgage, an excellent credit score will allow you to have an upper hand in the negotiating power and also prime you for receive low-interest loan deals.
Here are some of the most amazing benefits of having stellar credit.
Having an excellent credit will provide you with an enhanced borrowing capacity as creditors will see you as a person who pays their bills on time and is a responsible credit card holder. You can also request an increase in credit limit or your card company will automatically increase it if they feel you have earned this perk with your regular payments. However, the ratio of available credit to used credit also plays a dominant part in determining your credit score and increasing the limit and adding a few more points can increase your already stellar credit score.
When you have a clean credit or a high credit score, mortgage companies and lenders are more interested in giving you an attractive rate for your home loan. You are basically their ideal customers. Getting refinancing for your home will be easier and your high credit score will also win you points regarding the underwriting department who will be all too happy to tell the bank that you are a responsible payer. Regarding other fees and closing costs, you will have a dominant negotiating power and since banks are always competing to be the best in town, customers like you are their favorites.
If you are thinking of buying or leasing a new car, you can get lower financing rates on car lease with an excellent credit score. Lenders are more than happy to give you lower-than-average financing rates and you can always flaunt your credit history for bargaining for a better rate. However, remember, if you can’t lower the rate, try to negotiate the actual price of the car itself. Review your insurance package when they run the VIN umber through the system to get a better rate.
Planning an extended vacation or stay at an exotic location or renting a vacation home can be really straining on your finances. However, if you talk to a rental agency and flaunt your good credit score, they are more likely to waive the fees and also lower rates based on your credit history.
If you are a credit-savvy customer, you know how many perks you can accrue with credit cards, which reward you for paying off your balance religiously each month. Rewards cards can allow people with excellent credit score and history to take advantage of low introductory rates, free gifts, attractive rewards and cash-back deals.
Last but not the least, if you are thinking of applying for a future loan from a corporate financial institution or a private lender, having a high credit score can help you receive lower interest rates, an attractive payment schedule and the power to negotiate a deal and to use it as leverage for better deals.