What You Can Do with Your Good Credit

Everyone is advised to build an early credit history and to keep it in good shape. But after all your hard work, do you know the benefits you can reap out of your good credit? Do you know how you can use your credit history to your advantage? Can a high credit score make a difference during times of financial crisis?

Get the best credit card. If you need to get a new credit card, use your impressive credit rating to get a lower rate. True, the best credit cards are only offered for people with excellent credit so you can ensure quick approval. Nevertheless, you should still take the initiative to request your issuer for a lower rate especially if you know you deserve one.

If you already have a credit card, call up your issuer and request for a low rate. BE sure to ask for the supervisor or manager before making the request. Before making the call, do some investigation about the rates offered by other credit card companies. Point out these options to your issuer and let them know that you are willing to stay with their company if they can match the other card's best offer.

Negotiate for a low rate. Do you plan to apply for a loan or an insurance policy? If yes, don't forget to check your credit score and use it to negotiate for a lower interest rate. While lenders may not volunteer to give you the best possible rate, you can reduce a great deal from the offer by trying to negotiate. Remember that reducing your rate by even just a few points could make a huge difference in the long run.

What makes a good credit score?

Today, many lenders are more exacting about consumer scores. A FICO score of 720 used to be good enough but today some lenders have raised the bar as to what's considered a good rating. To be sure, you'll want to reach a FICO score of at least 740 and above since a higher credit score will strengthen your negotiating power.

Other Advantages of Good Credit

Aside from getting a good credit card deal or loan deal, what are the other benefits to having good credit? Lenders and insurers are not the only ones interested in what your credit report reveals. Even potential employers may look into your credit report before hiring you for the job. While it is against the law to refuse an applicant or fire an employee solely because of his/her credit history, personal credit score remains to be a significant factor in an employer's decision.

If you are looking for an apartment to rent, most landlords also check consumer credit reports to determine a potential renter's background and credibility. Obviously, having good credit gives you more flexibility in choosing the place you want to rent in. Furthermore, having an impressive credit history may give you the chance to be offered a better rental price while a poor score may limit your options.