5 Benefits of Maintaining Good Credit

Although it’s possible to survive with a bad credit score, maintaining good credit will allow you to reap a variety of financial benefits.

Here are a few reasons why.

When you fill out a rental application, landlords often require a credit check. For landlords, a good credit score indicates that you’ll make timely rent payments.

Although a bad credit score may not automatically disqualify you from renting, landlords tend to prioritize applicants with good credit scores.

A good credit score helps you get lower interest rates on loans, which help pay off large expenses. Applicants with credit scores of 720 or above are often offered the best rates and features, including flexible terms.

Still, Eastern Loans offers same-day payday loans for individuals with bad credit and limited incomes.

Most lenders have a large range of APRs (annual percentage rates), which depend on credit score. Only those with high credit scores qualify for low APRs.

Obtaining a loan with a low APR enables you to pay a smaller fee than those with low credit scores, effectively saving you money.

Security deposits can be a huge financial burden when you’re moving. Deposits can start at $100 and go much higher, often including first and last month’s rent.

A good credit score means you won’t have to pay a higher security deposit when you move in, as it shows you’re a reliable tenant.

Insurance companies tend to offer better car insurance rates to individuals with good credit scores, as they associate bad credit with filing more claims.

As a result, individuals with bad credit often receive higher insurance premiums.

Maintaining a good credit score will help you save money and make your financial life exponentially easier. So keep an eye on those numbers.