When people talk about credit scores, the tone of the conversation normally takes on a negative aspect. It seems that people tend to be focused on the ??bad?? side of the system. They cannot be blamed, however, as you can??t even begin to count all the horror stories about credit scores. Then again, it is always good to look at things in a positive light. So in this post let??s take a peek into the other side and talk about what your credit score can do for you.
A good credit score
Good credit scores ?? not excellent, mind you ?? can save you a lot of money. As we all know, credit scores always come up when you are taking out a loan. With a credit score of say, 700, you will have about 5% to 8% savings as compared to those with fair credit scores of 600 to 650. We are talking about FICO scores, by the way. These savings come in the form of interest rates applied and the monthly payments as well.
Another area where your credit score will make a huge difference is insurance. Everyone knows how much of a headache you can get from your insurance premiums. The thing is, with a good credit score, you can make a lot of savings regarding your insurance premiums.
These may seem obvious but it is good to be reminded every now and then. With these benefits in mind, you may be motivated a little bit more to improve or at least maintain your credit score.