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Bonus Perks + Good Credit

By July 23, 2021September 16th, 2021No Comments
Bonus Perks of Good Credit

Bonus Perks + Good Credit


Did you realize there are bonus perks for good credit?

Having bad credit is not a death sentence. Having poor credit is not easy, and it usually has a higher price tag. Credit scores track your financial history so lenders can know whether you are safe to take a risk on or not. They want to know that you are responsible and will make your payments. We all like our credit cards perks, such as air miles or cashback rewards. There are also quite a few other benefits of using your credit card.


♥ More Negotiating Power

Good credit allows you to negotiate a lower interest rate. You can shop around for a lender whose parameters fit your needs instead of being stuck with the high rate guy because someone linked to your credit as a joint responsibility forgot to pay their bills for a while. On the other hand, if your credit sucks, I do not recommend trying to negotiate anything and get out of there as quickly as you can before they change their mind!

♥ Approval for Higher Limits

The amount of credit given to you is based partially on income and secured debt, also known as your debt to income ratio. The rest of the proof that you can and will make your payments comes from your credit history. The longer you stay on track with your payments’ the odds of your credit line increasing on a scheduled basis or after a review are significant, higher line of credit, lower debt to income ratio, and your score will rise. However, beware that if you are working on rebuilding your credit, any late payment, even after just one day, can tank your score more than if you had good credit and accidentally spaced off a past due payment or two or forgot to switch on auto-pay.

♥ Low-Interest Credit Cards and Loans

The worse your credit, the higher the interest rate. The better credit you have, the less you pay in interest and can pay debts off, build savings, or have more funds available for other expenses.

♥ Approval for Rental Houses and Apartments

A credit score wasn’t always taken into consideration when landlords are deciding whether to approve a tenant or not. Now, it’s almost standard practice. They are looking for previous evictions and past-due rental balances. With the insane housing market in mind, it’s even more imperative to keep an eye on credit scores. Knowing you have good credit gives a sigh of relief that you will save time and money while finding a landlord VS being moved to the bottom of the list.

♥ Credit Card and Loan Approval

Those with less than stellar credit could still apply for a signature card to help get their credit history a reset. Better credit wouldn’t require as much leg work, but that doesn’t mean you will be granted a loan. Lenders are also factoring in your debt to income ratio. Loans are increasingly harder to get, especially for mortgages if your credit has any flaws.

♥ Car Insurance Rates

Automobile insurance has joined the list of places that factor in your credit score when deciding whether you are high risk or not. If you have a lower credit score, you will often be penalized by having higher insurance premiums and will always pay more than someone who has a higher credit score.

♥ Cell Phone – Pay as you go, or Contract?

Hoping in line behind auto insurance is the phone companies. With a lower score, you may be looking at pay as you go instead of someone who can get a higher quality phone and finance the monthly payments. Another perk is not having to pay a security deposit or some other type of down payment.

♥ Security Deposits + Utilities

Speaking of security deposits, utilities are another sector that may ask for a $200-$300 deposit. That isn’t easy to do during moving when expenses are already tight.

♥ Bragging Rights

You’ve worked hard for that credit score and should be proud of the hard work and dedication. You accomplished a big feat, and that is impressive. Especially if you have ever had to start over after bankruptcy or while being down on your luck or flat out poor financial planning. 



For science reasons, I was curious about what had changed in score requirements. After a quick search, I found that NBC had reported a score of 760+ to get some of the best interest rates for 2021. If you were still living in 2011, the minimum credit score to buy a home with an FHA loan would be 500. 

If you wanted to go with a 3.5% downpayment, you would need a score upwards of 580. Today’s minimum to qualify for a Fannie Mae loan is at least 620.


120 Point difference for a minimum to buy a home;

Think of what the potential requirements could be in another ten years?

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