1. Lower Insurance Premiums
When it comes to determining insurance premiums, many factors are taken into account—and your credit score is one of them. Although it may seem surprising, insurers use credit scores to assess risk and set rates. Studies have shown a correlation between high credit scores and safe driving habits, meaning consumers with scores of 800 or higher may enjoy lower insurance costs. This translates to more savings in your pocket, making your financial planning easier.
2. Reduced Rental Costs
If you’re looking to rent a new place, landlords often require a substantial amount of upfront cash, which typically includes the first month’s rent, last month’s rent, and a security deposit. However, if you boast an 800 or above credit score, landlords might be more flexible, potentially waiving the requirement for last month’s rent and only asking for the first month’s rent and a security deposit. This reduction in upfront costs can relieve financial pressure and make moving into a new home more manageable.
3. Access to Better Cell Phone Plans
Upgrading your cell phone can come with hefty costs, but having a high credit score can ease this burden. Many carriers allow financing for cell phone purchases, but favorable rates typically require good credit. If you have a score of 800 or higher, you’re likely to qualify for better financing options. Furthermore, when signing up for a monthly cell phone plan, a credit check is standard. A solid credit score can help you avoid being limited to prepaid services and instead allow you to choose from a wider range of plans.
Steps to Achieve an 800+ Credit Score
Boosting your credit score to 800 or higher can vastly improve your financial landscape. Here are some effective strategies to help you reach this goal:
- Make Timely Payments: The most critical factor in building your credit score is ensuring all bills are paid on time. Consistency in payments reflects positively on your credit history.
- Reduce Credit Card Debt: Keeping your credit card balances low relative to your limits can significantly impact your credit score. The lower your overall debt, the better your score is likely to be.
- Check Your Credit Reports: Regularly review your credit reports for errors or discrepancies. You are entitled to one free report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—every year. Aim to check a different bureau’s report each month to ensure accuracy.
- Address Errors Promptly: If you spot any inaccuracies that could harm your credit score, address them immediately. Reporting errors quickly can help mitigate potential damage to your creditworthiness.
