Your credit history impacts your daily life and influences almost every financial move you make. Good credit history can help you access five major things:
- Lower interest rates: Lower mortgage rates, car loans, and personal loan interest rates make your monthly payments lower, freeing more space in your budget for saving and spending.
- Better credit terms: Higher approval chances for credit means you can make financial decisions about your future with confidence, whether you need additional funds for school, home renovations, or a new car.
- Higher credit limits: You can qualify for higher credit limits, which gives you more financial flexibility in an emergency and makes it easier to maintain a reasonable credit utilization rate.
- Top-tier financial products: You’ll have higher chances to qualify for premium credit cards, such as rewards cards and cashback cards, along with other top-tier financial products.
- Rental applications: Landlords often require a copy of your credit report as part of your rental application; in a competitive real estate market, having stronger credit can help indicate you’ll be a reliable tenant.