Credit Reports & Ratings Articles

Good Credit Ratings Lead to Savings and Money in Your Pocket

Having good credit is like having a protective halo that watches out for you and keeps bad things from happening to you. Plus, if you have a good credit score, everyone loves you. Lenders fall all over themselves to loan you money. Car dealers approve your auto loan application within mere minutes. Credit card companies send you pre-approved applications with special perks attached to them.

It almost seems as though money is being offered to you every time you turn around. That's what good credit does for people. It opens financial doors that are closed to other individuals.

Financial and Other Benefits of Good Credit

In addition to having lenders and credit card companies seek you out instead of the other way around, consumers with good credit ratings also reap the benefits of lower interest rates and fees that can lead to savings of thousands of dollars each and every year.

With a sound credit history behind you, you can play loan roulette and keep on spinning the wheel until you find a lender that offers you a loan with the lowest interest rate and fewest fees. In fact, lenders seem pleased as punch when they review your credit history. They know that the favorable terms they can offer you should mean a deal in the making. If they like your credit, you like their terms, and the loan is offered and taken. Everyone wins.

Just imagine that you are buying a car and taking out a loan. With your good credit rating, you can get an extremely low interest rate and in some cases 0 % auto loan that will save you one or two thousand dollars. This savings is simply because you have good credit.

Now, imagine that you are purchasing a home for the first time. This purchase is going to be at least several hundreds of thousands of dollars more than what you needed to borrow for the car. Even with a 1 % decrease in the interest rate you are going to save thousands of dollars in financing this loan. Just imagine the kind of money you can save with a 1.5 or 2 % drop in the interest rate simply because you have good credit.

Not only does the existence of a good credit score next to your name get you better interest rates on loans, but also, it gets you lower interest rates on your credit card accounts as well. Plus, you get faster approval and higher credit limits.

So, You Have Bad Credit and Want to Switch Things Up

Don't despair if you currently have bad credit. It is possible to improve on your credit score simply by managing your money better and making the effort to improve your credit score. Start today and pretty soon you'll be saving money with your loans and credit cards too.