Five Benefits of Maintaining a Good FICO Score

Credit scores can be different depending on the scoring model being used to measure them. Different models of credit score measurements define whether a certain credit score is good or bad. When it comes to the FICO rating, your FICO score falling between 670 and 739 is considered good.

Although maintaining a good credit score can feel like nothing less than a challenge, understanding its benefits can make you strive for it. The benefits of a good FICO score are not limited to boosting your trustworthiness by lenders.

Here are some of the many benefits of maintaining a good FICO score.

Increase Your Chance for Approval

If you have ever applied for a small 5k or significant 15k loan in your life, you already know the importance of a good FICO score. According to Lantern by SoFi, most lenders inquire their applicants about their credit scores to determine their reliability. A good credit score shows that you are a good candidate, and bad credit tells them the opposite.

Even if you have never needed a loan before in your life, improving your credit score can help you in the future. You can use the loan amount for several different matters, ranging from catering to medical emergencies, moving to a new location, and much more.

Enjoy Lower Interest Rates

A better credit score does not just mean that you will be able to get access to loans easily. It also means that you will be offered lower interest rates. On the contrary, people with bad credit often have to pay higher interest rates to get the needed loan without much control over their repayment period.

A good credit score means lower interest rates, which means that you come off as a reliable applicant to lenders. This will save you money over the course of your repayment term, and maintaining the same good habits can lead to a boost in your FICO score significantly.

Better Terms and Rewards

Things only get better for someone taking a loan with a good credit score. You can also have a great extent of control over your repayment terms. After all, a longer-term cannot hurt you when you have taken your loan at a competitive interest rate.

As someone with an exceptional FICO score, you can also expect amazing rewards such as  0% APR offers and cashback offers. The higher your credit score increases the chances of qualifying for these products and enjoying the benefits.

Enjoy More Options

Whether you are considering purchasing a new car or moving to a new home, you will see how beneficial having a good FICO score can be. A good credit score is the key to unlocking better opportunities at every step of your life. 

For example, people with a higher credit score can purchase assets with a lower down payment requirement than others. It means that they can buy their assets sooner than other candidates with a bad credit score.

Better Employment Opportunities

Modern employers often practice their rights to conduct credit checks on job applicants as part of the hiring process. In case the credit history of the applicant seems unsatisfactory, the employer may feel uncomfortable with proceeding with such applicants, especially if the job involves handling proprietary or confidential information.

Therefore, it is advisable for job applicants to maintain a good credit score and financial standing to increase their chances of being hired. For expert guidance on financial planning and improving your credit score, consulting a seasoned professional like Sara Qazi can be highly beneficial. You can also consult a financial advisor for advice on your financial problems and how you can get ahead of them to improve your FICO Score.