Establishing credit is one of the most important things you’ll ever do. Good credit is essential throughout your life, whether you want to buy a house or car, get insurance, or maybe even pay less of a deposit for utilities. Unfortunately, building credit without a credit history isn’t easy. 9 Benefits of Having a Good Credit Score
- Low-Interest Rates on Credit Cards and Loans.
- Better Chance for Credit Card and Loan Approval.
- More Negotiating Power.
- Get Approved for Higher Limits.
- Easier Approval for Rental Houses and Apartments.
- Better Car Insurance Rates.
- Get a Cell Phone on Contract with No Security Deposit.
- Avoid Security Deposits on Utilities
Bad credit means possibly being denied a loan or can result in being charged higher interest rates. This is because the amount of interest you pay is based on your level of risk and the current market rate. The worse your credit is, the higher your level of risk is and the higher your interest rates will be.
What happens if my credit score is bad?
Having a poor credit history or a low credit score can seriously impact you financially. One thing that can happen is you could be denied a line of credit. A low credit score indicates to lenders that you are a high-risk borrower and they may not be willing to lend you money.
Is 650 a good credit score?
Best Credit Cards If Your FICO Score Is Between 650 And 699. Credit scores (also known as FICO scores) of 650, 660, 670, 680, and 690 fall in the range of average to above average. On the higher end of this range, a FICO score of 675 or above can be considered “good.”