Whether you’re looking to apply for a loan, rent an apartment, or even land your dream job, your credit score can significantly impact your success.
A credit score is a number that shows how good you are at handling money. This score will range from 300 to 850, with higher credit scores being the goal.
Credit scores are calculated by credit bureaus or credit reporting agencies using a scoring model. The better your score, the easier it is to borrow money and get better deals on loans and credit cards. In this blog, we’ll explore the importance of a good personal credit score and the many benefits that come along with it. We’ll also fill you in on how you can discover your own credit score for free.
Why is having a good credit score important?
A good credit score shows lenders that you’re responsible with your money and will likely repay what you owe on time. This can help you get better interest rates and loan terms, saving you money in the long run. On the other hand, if your credit score leaves a lot to be desired, getting approved for loans can be tricky, and you might have to pay higher interest rates or deposits.
Benefits of having a good personal credit score
A good personal credit score can lead to many opportunities and benefits that can positively impact your financial life. The biggest of these benefits include the following:
1. Easier to get loans and credit approved
A good credit score can make getting loans and credit approved much easier as you’re not considered a credit risk. When you’ve got a solid credit score, lenders see you as a safer bet, which increases your chances of approval. This is especially useful when looking for bigger loans like mortgages, where getting approved can take a while and be a bit of a hassle.
2. Lower interest rates
One of the biggest advantages of a strong credit score is that it can help you qualify for lower interest rates on loans or credit cards. When lenders do a background check on your credit report, a positive score will tell them you’re a low-risk and responsible borrower. This means they’re happy to offer you better interest rates. This can save you a healthy sum over your loan or credit card’s lifespan.
3. Better rental and job opportunities
Landlords and employers often check credit reports or credit history as part of their screening process. A good credit score can boost your chances of getting approved for an apartment lease and make you a more attractive candidate for certain job opportunities.
4. Better insurance rates
When determining insurance premiums, some insurance companies use credit scores as a factor. Studies have shown that individuals with higher credit scores are less likely to file insurance claims, making them less risky to insure. As a result, insurance companies may offer lower premiums to customers with good credit scores.
Your credit score is super important for your finances and personal life. It affects everything from getting a loan to renting a home or landing your dream job. When you learn how credit scores work and the benefits of having a good credit score, you can begin to take active steps toward improving your own.
How do I find out my credit score?
Once a year in the US, you’re entitled to one free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion).
To get free credit scores from a credit bureau, you can visit the website AnnualCreditReport.com. This website is the only official website authorized by the federal government to provide free credit reports.
Credit scores are calculated using things like your payment history and how much credit you’re using.
Explore competitive loan prices at F&M Bank Georgia
At our Georgia branch, our F&M Bank team understands that our customers have unique goals and needs regarding their finances. That’s why we’re committed to offering a wide range of competitive lending and credit account options to help them achieve their goals.
Our offerings for personal customers include auto and home equity loans. Additionally, we provide commercial lending options for businesses of all sizes, such as expansion loans, commercial real estate loans, and lines of credit.
For more information on our lending opportunities, get in touch today.