Why is It Better to Have a High Credit Score Than a Low One?
A high credit score saves money, offers better borrowing rates, and opens doors to benefits and opportunities, making it better than a low one.
by Sai V
Updated Oct 21, 2023
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Why is It Better to Have a High Credit Score Than a Low One?
Having a high credit score is advantageous for several reasons. It simplifies apartment rentals and lowers insurance premiums, saving money for policyholders. Additionally, it results in cheaper borrowing, with reduced interest rates on loans and credit cards.
A high credit score enhances financial preparedness, enabling access to credit during emergencies. Moreover, it grants access to exclusive perks and rewards, providing additional financial benefits. Lastly, it enhances one's reputation, positively impacting both financial opportunities and employability prospects.
What Is a Credit Score?
A credit score is a three-digit number, ranging from 300 to 850, that indicates an individual's creditworthiness. It is calculated based on factors like repayment history, types of loans, credit history length, debt utilization, and new account openings. Lenders use this score to determine loan approval and interest rates.
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