1. Better interest rate
We don’t charge interest here at SteadyPay (we’re a subscription service), but other lenders do. The interest rate you’re offered is pretty much tied to your credit score and credit history. If these are in a good state, you should qualify for a good interest rate. This means the cost of borrowing is better as you’re paying lower finance charges on loans and credit card balances.
2. Better chance of approval
There is no such thing as guaranteed approval, but a good credit score and credit history increases your chances. In other words, you can apply for a loan or credit card with a greater sense of confidence.
3. Higher credit limit
How much you can borrow is largely based on your income and your credit score and credit history. If these are in a good state, lenders are willing to let you borrow more money because you’ve demonstrated that you pay back what you borrow on time.
A good credit score and credit history gives you leverage to negotiate a better deal (i.e. lower interest rate) on a loan. And if you need even more negotiating power, with a good credit record you can shop around and take advantage of other loan offers on the market.
It takes considerable time and effort to build a good credit record. So take pride in it, especially if you’ve put in the hard yards to take your credit record from bad to good. A good credit record is the basis to financial wellness.