Borrowing power can increase tremendously when you prove to creditors that you can effectively handle more credit. You can ask your credit card company to increase your limits, and they often will. It’s important to remember that your ratio of available credit to used credit takes a role in calculating your credit score.
A high credit score can also help you improve your chances of being approved for a loan. Of course there are some other factors as well, such as income and current debt, but your approval rates will still be much better.
If your credit history is clean, and you have a high credit score, you are more likely to receive lower mortgage rates. You will be considered as a prime customer to lending institutions.
Looking for a new car? A new toy perhaps? Interest rates for lending on these items are set based on your credit history. Much like mortgages, the higher your credit score, and the cleaner your credit history, the lower your interest rate will be.
Negotiating power is strengthened, allowing you to shop different offers, and leverage potential offers against one another. More offers and options open up to you if you have a high credit score.
Auto insurance companies say that people with poor credit tend to file more claims, and are often penalized with higher insurance premiums. With a good credit score, you are likely paying less than similar insurance holders.
Many services require deposits, including: electric, gas, cell phones, TV, internet, etc. Often times these deposits can be reduced, or even waived for those with good credit. This can save you hundreds of dollars when you are moving to a new location.
It may seem odd to think that your credit could affect your ability to get a job, but the truth is that more and more employers take your credit into account when deciding whether to hire you. People with good credit tend to be more trustworthy and responsible, and these are qualities that employers want.
Contributing 35% to your score's calculation, this category has the greatest effect on improving your score, but past problems, like missed or late payments, are not easily fixed.
This category contributes 30% to your score's calculation and can be easier to clean up than payment history, but that requires financial discipline and understanding the tips below.
If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.
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