How Can a Good Credit Score Save You Money?

September 10, 2014

good creditHaving good credit can benefit you in a variety of ways, so it’s important to begin establishing your credit early. However, good credit doesn’t happen overnight. Your credit score is based on a combination of factors, including your creditworthy habits and behaviors, and how long you’ve been exhibiting them.

One of the primary benefits of having strong credit is the financial savings you can incur throughout your lifetime. As reported in 2010 by the Annie E. Casey Foundation, borrowers with good credit can save up to $250,000 in interest and other expenses throughout their lifetime.

Here are three ways that having good credit can benefit you:

  1. Insurance can be expensive, whether it is for a new car or your home in Chicago, but it is a necessary part of life. Many insurance companies use a credit-based score to determine whether or not you will be approved, and it can also affect how much you pay for monthly premiums.
  2. Whether you rent or own your home in Chicago, you likely have utility, cell phone or cable bills in your name. Before agreeing to a contract, most providers will check your credit score, which determines whether or not you are required to pay a deposit and how much it will be. The higher your credit score, the more likely that you will not be required to pay a deposit.
  3. You will likely need to borrow money at some point in your life, and a good credit history can save you thousands of dollars in interest. The higher your credit score is, the lower your interest rate is likely to be. This can result in significant savings, especially on larger purchases, such as a new home.

To learn more about how having good credit can benefit you, read the full blog post, “

Three Reasons You Need a Good Credit Score,” on the Equifax Finance Blog.

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