Having excellent credit scores has helped my wife and I save in many ways over the years. We didn’t always have great credit scores. Both my wife and I had our periods of credit card debt. Along with that came the occasional late payment and the regular stealing from Peter to pay Paul lifestyle. But we both wised up and, over time, eliminated our credit card debts. With that came better and better credit scores. We’ve discovered that having a good, or great, credit score has its benefits.
Here are some actual ways we have benefited and saved from our excellent credit scores:
We’ve bought two cars together. Each time, before we went shopping for a car, we checked our credit scores. Knowing our credit scores before hand allowed us to confidently shop for a car that had a low interest rate. Our mini-van has an interest rate of 0.9% while our compact is 2.9%. These are much lower than the average new car loan and were only possible because of our credit scores.
As we were closing on the sale of our co-op we started looking for a place to rent for a bit. Again we pulled our credit scores to have in hand to show prospective landlords. Having excellent credit scores allowed us to show our landlord that we were very low-risk in not paying our rent in time. This made us preferable to other people looking and allowed us to put our apartment on hold until our co-op sale was final. High score means you pay bills on time; low score means you are a risk. Which do you think a landlord wants to see? [Note that we pulled the myFICO scores ourselves to avoid having each prospective realtor or landlord pull them. This saved us money and time.]
We get a preferred rate on our car insurance due to our credit scores. For an insurance company, a high credit score equates to high responsibility. In the eyes of our car insurer we are seen as more responsible drivers and less of a risk of using our automobile insurance.
Lower Credit Card Rates And Offers
We’ve been paying off our credit cards in full for some time now. Still, I’ll call a card company to make sure we have the lowest rate possible in case we ever need to carry a balance. Our credit scores help insure better credit card interest rates. It also gets us better offers such as 0% interest credit cards. I signed up for a 0% credit card when we were planning our wedding and used to card to earn points. We put the money in an online savings account to earn interest during the interest rate term, which for us was a year. Because of our credit scores, we got a nice bonus after our wedding by cashing in our points for gift cards.
Take a look at some great Credit Cards for Excellent Credit.
Its been about two years now that I signed up for two Sprint SERO accounts. When I called to sign up, one of the requirements was a credit check. They were going to mail us the phones so I guess they wanted to make sure we weren’t going to run off with them. Know what our cell phone plan costs? Thirty dollars each! Most plans today with unlimited data and texts cost more than that for one plan let alone two. Credits scores for the win again!
When it comes time to get a mortgage to buy a house our credit scores will go a long way to make sure we get the best rates out there. A couple of tenths of a percentage point can cost thousands, or more, over the life of a 30 year mortgage.
As you can see, an excellent credit score can go a long way to help you save money! If your credit score isn’t as high as you would like, or you know you are going to need your score for a loan, or something else, then get working on improving your credit score now! A great credit score can save you thousands!