A credit score shows how likely you are to pay your bills. This means those with a high credit score have a better time getting approved for financial products and get the best interest rates. Having a FICO score of above 670 is considered a good score.

There are many different benefits to getting your score as high as possible. Checking your score on a regular basis can help make sure you are doing what you can to improve your score and reap the benefits.

Better Chance at Credit Card and Loan Approval

If you have a poor credit history then you may be denied a loan or credit card. While having a high credit score won’t automatically guarantee approval since other factors are considered, it definitely increases your chances so you can be more confident when you apply.

Get a Loan with a Low-Interest Rate

While today’s interest rates are already at record lows, if you want to qualify for the lowest rates then you do need to have a good credit score. There are many different loans that require good credit.

If you want to buy a home and need a mortgage, your credit history is going to be one of the biggest roles in determining the interest rate you are getting. Despite your score, you still want to shop around for the best rates.

Personal loans can be helpful when it comes to lowering your credit utilization rate and consolidating debt, but you also need a good credit score in order to get a good interest rate and make a personal loan worth it.

If you have student loans, you may want to take advantage of lower interest rates and refinance the loans. If you want lower interest rates on your credit card, having a good credit score will also help you.

Qualify for a Refinance

If you want to get a loan now and have a great credit score then you are in luck, but you can still take advantage of low rates and refinance. You can refinance a number of different loans.

Lower Insurance Premiums 

If you have a high credit score then it means you will pay less for home and auto insurance. It’s best to compare home and auto insurance companies, along with their fees and rates, to see if switching companies is going to be worth it.

It’s Easier to Rent a Home

Before you can sign a lease, a landlord will usually check your credit report. Since your credit score is an indication of how likely you are to pay back bills, including your rent, those with a higher credit score have better chances of having their rental application accepted.

Landlords don’t want to have to worry about coming up with the funds to pay the mortgage on the property so this is important to them.

Credit Card Rewards

Those with a higher credit score can take advantage of credit card rewards more easily. If you don’t need to have a card that has a 0% APR then you may qualify for other reward options, such as redeemable travel miles or cashback.

Compare different credit card rewards, including the fees and rates that come with them, to find the best card for you. When you have a higher credit score, you will have more options available to you.

High Credit Card Limits

Borrowing capacity is based on your credit score and income so one of the benefits is that a bank is more willing to let you borrow more money since you showed you can pay it back. While you can still get approved for a loan with a low credit score, you have a better chance of getting more money with a higher score.

More Negotiating Power

When you have a high credit score, you have leverage when it comes to negotiating a lower rate on a loan or credit card. You are also able to have bargaining power to take advantage of other offers.

Avoid Security Deposits

When you have bad credit, you may have to have a security deposit on your utilities or with a cell phone service provider. Those with good credit can avoid paying security deposits and may even get discounts on phones by signing contracts with cell phone providers.