Consumers are advised to build credit history and keep it in good standing.  But do you know what you can do with your good credit?  Does it really make a difference whether you have good credit or not? If you presently have a high credit score, how can it help you save money especially during times of crisis?

Get the best credit card. If you plan to apply for a new credit card, an impressive credit rating will surely win you fast approval.  But not only that!  You can qualify for credit cards that offer the lowest interest rates and the best deals.

If you already own a credit card, you can also use your good credit score to your advantage.  How, you may ask?  You can call up your issuer and request for a low rate.  Of course, credit card companies will never volunteer to reduce your rate unless you make the request.  Nevertheless, your issuer will most likely give in to your request if you are considered as a customer worth keeping.

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Negotiate for a low rate. Use your good credit standing to negotiate for a low interest rate whether you are applying for a loan or an insurance policy.  Keep in mind that lenders and insurers reserve their best deals to customers with impressive credit.

Being able to lower your interest rate by even just a few points can save you hundreds, even thousands of dollars in a year.  Before signing up for a loan or insurance policy, always try to negotiate for a better deal.

What makes a good credit score?

Generally, a FICO score of 720 is considered as a good score but today lenders tend to be more exacting and a FICO score of 740 and above is preferred.  Yes, not all lending companies use the FICO scoring system.  Some lenders evaluate credit-worthiness based on their own credit scoring systems.  Nonetheless, keep in mind that the higher your credit score is, the lower the interest rate you can get.

This is why consumers are encouraged to shop around for lenders first before making a choice.  Since the rates and fees vary depending on the lender and your personal credit score, you need to weigh your options carefully and use your good points to your advantage.

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Other Advantages of Good Credit

Are there other advantages to good credit?  If you are looking for employment, having good credit can also be a major advantage.  While it is against the law to refuse an applicant or fire an employee based upon his/her credit rating, it is an undeniable fact that credit history is a significant factor in an employer’s decision.

Are you looking for a new apartment?  Aside from lenders, insurers and employers, landlords also check consumer credit reports in checking a potential renter’s background and credibility.  In this case, having good credit can give you an easier time choosing the place you want to rent in.

About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Reports Online

Information in these articles is brought to you by www.newhorizon.org. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+