What do use a credit score for?
Having a good credit score can give you great advantages when trying to obtain loans and save you a lot of money over time, but there are many different reasons a good credit score is beneficial. The first and most obvious benefit is lower interest rates on loans and credit cards. A great credit score can receive much better interest rates than poor ones: “Someone with FICO scores in the 620 range would pay $65,000 more (in interest) on a $200,000 mortgage than someone with FICOs over 760” (via Nerdwallet.com). You can also be approved for better credit cards with lower premiums, better benefits, and higher limits. Car insurance companies also reward applicants with good credit scores with lower premiums than similar applicants with lower scores. Another advantage of a high credit score is much easier approval for apartments and rental houses as the landlord will have more trust you can pay rent each month than a similar applicant with a lower credit score. Security deposits for cell phone contracts and utility services can also be avoided if you have high credit scores. A good credit score is hard work to achieve, but the benefits in the long run are well worth it.