Can Good Credit Save You Money?

There are plenty of tricks to save money. You can skip the morning coffee at the corner café. You can put extra change in a jar, or use an online app that rounds all your purchases up and puts the change in a savings account. You can plan your meals and buy only ingredients to make food at home. But can you get rewarded for good credit? Yes! Having a good credit score and history can help you save money in a number of ways. Check out these examples.

Best Rates on Personal Loans

If you are interested in getting a personal loan to pay for things such as student debt, or resolve medical bills that have been plaguing you, your good credit will end up a lifesaver. Those with good credit get the best rates on personal loans. Many people can qualify for loans, but the repayment terms and the fees that are associated with personal loans can vary greatly. It’s based heavily on your credit history, so always check your history to make sure there are no errors that could cause concern.

Lower Interest Credit Cards

Interest on credit card balances can really add up. In fact, for many people, the interest rate is so great that soon their original purchase is just a fraction of what they owe the credit card company. When making purchases on credit (which can sometimes help credit scores when paid back on schedule), how much interest matters. With a good credit score, you’ll qualify for credit cards with low interest rates. Sometimes, you can even get cards with zero interest — a perfect opportunity to buy a bigger item and pay it off over a short period of time for free.

Better Deals on Insurance and Other Bills

A little-known secret about good credit is that those who have taken care of their finances over the years can get deals on everyday purchases that everyone needs to make. For example, car and home insurance companies usually do a credit check before quoting you for a policy. Those with bad credit may be deemed a risk, and be forced to pay more for the exact same coverage. Phone companies do the same thing. If you seem like you may skip out on your bills, there may be a penalty to pay.

Opportunities to Refinance

Debt isn’t always a bad thing. Mortgages can help maintain good credit, if you pay each month and stay current with your bills. In fact, if you’ve paid enough to have equity in your home — value beyond what you owe, based on the current market value — your good credit can also help. You’ll have more opportunities for a refinance if there is a need for debt consolidation, or if you have a big project to fund. This is also true for personal loans.

If you’d like to do more research about whether a personal loan could work to improve your credit, just click on Refi.com’s personal loans page to learn more.  

Sources:

https://www.thebalance.com/having-good-credit-score-960528

https://www.takechargeamerica.org/5-benefits-of-a-good-credit-score/

https://www.cnbc.com/2018/03/28/if-you-have-a-good-credit-take-advantage-of-these-3-perks.html