Ever since I was young, I was taught the benefits of establishing a high credit score.

My parents taught me to purchase things on the credit card since the first day that I got my first credit card, but they also pounded into my brain that I should pay it off every month.  Since I didn’t carry a balance, it probably took a longer time to build up my credit rating, but since I didn’t need it for any big purchases at age 18, it didn’t affect me.  That said, today my rating it’s over 800, so even by paying off my balance each month, I was still able to move my credit score up!

Credit Score Benefits

If you have a high credit score, you have some leverage to get better deals… if you know how to use it.

• This is one time where it is good to brag!  Tout your high credit score by asking for a better interest rate on loans for cars and mortgages.  The bank know that you are valuable since you are unlikely to default on the loan, and the bank wants your business because of this fact.
• You can get special discounts on financial products such as the various types of insurance.  Apparently being a safe, responsible driver and having a high credit score are highly correlated.
• You will receive the premium credit card offers in the mail.  I typically get the premium credit card offers, including a black card in the mail.  I’m sure this is because of my high credit score because my salary sure doesn’t warrant it!!!
• Prospective employers can check your credit score rating before hiring you.  While this may not be done much in practice, it’s an option that an employer has.

Okay, now that we know that there are obvious benefits, the trick in receiving those benefits is to ask for them!  For instance, if you’re looking to buy a car and need a loan, the company loaning you the money isn’t going to say “hey, based on your credit score we’re going to shave an additional quarter of a percent off of our current rate”!  You’ll  have to know what you are worth before you go in to get the loan!

If you have a high credit score rate, congratulations!  Just make sure you use your credit score power wisely!

MR