Whether it’s in commercials, in conversations with friends or even on this site, society puts a lot of pressure around having a healthy credit score. From the early stages of adulthood, it is ingrained in us that our credit score is a vital part of our identity, setting us up for financial success or failure depending on millions of intangible factors, some even out of our control. And quite frankly, the hold our credit score can have on us can feel… haunting.
Today we are going to flip the script on the credit score ghost, telling a new tale free of fear-mongering. Today we are celebrating what a healthy credit score can bring to you and your family’s life as you set up for whatever milestone comes next.
Better terms and availability on loan products.
Having a healthy credit score can help you get the best terms possible when taking out loans, including lower interest rates and even access to more loan options. Whether it’s buying a new house, purchasing a new car or even starting a business – having a higher credit score helps assure lenders you’re well-versed in managing payments, enhancing your chance to get loans for premier products and higher loans, all with better payment terms.
Access to the best credit cards.
With contactless payment reigning the retail space, having a high-quality, EMV chip card is essential these days. In addition to heightened security for your personal information, a great credit card can also allow you to earn travel miles with major airlines or even let you rack up rewards for free gas and groceries. When applying for credit cards, your credit score is one of the major factors in whether you are granted access. With credit card companies initiating a hard credit inquiry during the application process, they are taking a deeper dive into your credit report, analyzing your ability and willingness to pay bills over extended periods of time. When your credit score is in a good range, they know you have the means to manage finances and are more likely to keep credit card balances low.
More housing options.
We all dream of our forever home, and no matter what yours is filled with, the first step is getting a mortgage. A mortgage is a type of loan for housing or a piece of real estate in which the property serves as the collateral. Mortgages are usually paid monthly, similar to rent, however obtaining a mortgage is a much more rigorous process than renting a property, as the goal with a mortgage is full ownership over that property. This type of loan is another case in which a hard inquiry would be initiated, with the loaner doing a comprehensive review of your credit report to ensure you are a reliable buyer for the long haul. With a healthy credit score and report, you will have more opportunities across the city with better loan terms, allowing you to put a downpayment on a home and grow alongside your investment.
Insurance discounts
When building an auto insurance plan, many companies these days will reward things like all A’s for students, with the ‘adult’ version of this being a good credit score. This will gain you access to lower insurance rates, with the ideal score to unlock most companies’ discounts hanging around 700. Auto insurance can be a big financial commitment, no matter if you have a monthly or bi-yearly plan, and as you reap the rewards of a recovered credit score, use that extra money in your pocket as motivation to keep it healthy.
Better interest rates for big ticket loans.
Your credit score can serve as a risk management tool for lenders as they decide whether or not to loan you money. A higher score means you are less likely to miss payments and more likely to uphold your end of the deal within the time allotted. For this reason, lenders will reward higher credit scores with lower interest rates, saving you money as you work to pay off the original loan with reduced add-on costs over time. This ends up putting you in a positive feedback loop, as lower interest rates enable you to take on a wider variety of loans, increasing your credit mix, and therefore score, for even better terms, interest rates and opportunities.
See? Your credit score can serve as a truly positive force in your life, allowing you to build the life you want and create the financial stability you deserve. And, by taking advantage of these opportunities, it creates positive feedback back into your credit score as you continue to make frequent payments to new loans and diversify your credit portfolio.
Feel like your credit score could use a refresh? Give yourself A Fresh Start on Your Credit Score with Platinum Credit Solutions by calling (832) 872 1057 or emailing info@platinumresolutions.com.