Reading Time: 3 Minutes
If you think that a good FICO score or credit score only get great mortgage loan rates you’re selling yourself short. Read this post to find out more.
Good FICO Score | Good Credit Score
Everyone knows that a good FICO score is important. It is incredible how powerful it is. That three digit number represents how much risk you represent to lenders. A FICO score is determined by the Fair Isaac Corporation as a measure of creditworthiness.
You may be wondering what a solid FICO credit score range is. Here’s the scoop: to be in the top tier you have to have at least 750 on the 850 point scale. If you don’t know what your score is you can check it out at myfico.com . It costs around $20 to find out.
However, my thinking is this: If you don’t know your credit standing by now…well, I recommend you don’t waste the money. You know deep down if you’ve got the goods or not, right? Do you have bad credit or are you in debt? If so, there are plenty of guides online or on this site on how to improve your credit score. Check them out. Get your creditors squared away then come back and read this. You’ll get there!
Sidenote: Credit bureaus (Experian, Equifax, Transunion) weigh factors, determine credit scores, and issue scores via credit report. So, if you’ve got top rate credit scoring you’ll get the best rates when you borrow money.
If you are in the high FICO score range you are part of an elite group. About 1/3 of Americans have this credit rating and considered the best credit risk. So, what’s in it for you? As I mentioned earlier you get the lowest rates on vehicles and homes. However, you also get velvet-rope treatment when it comes to other things too. In this post, I’ll discuss three things you should get deals on. You’ve earned the high credit score now use it to save more cash!
FYI: Vantagescore isn’t the same as FICO.
Good FICO Score | Good Credit Score
Credit Cards
The average variable annual percentage rate for credit cards is around 14.5%. With your great credit you’ll likely qualify for cards that charge about ½ of that in interest charges. Check out the Simmons First Platinum Visa. These guys are offering 7.25% as of this writing. The Citi Platinum Select Mastercard is offered at 0% for 21 months. Imagine the possibilities!
If you are paying ANY fees whatsoever you need to dump that card company immediately or get a change! If you are paying more in interest than you’d like fight that too. You can afford to walk. Call up the customer service folks at your credit card company, remind them of your FICO score, and tell them you’re leaving if they don’t make it right.
Car Deals
Remember those days when you were almost begging for a car loan? I do. If you don’t, consider yourself blessed because my first car buying experience was gut-wrenching. I was worried about financing and my credit sucked. This meant the dealer had me cornered. Not anymore…why? I have a killer FICO. My plan is always to pay what I want for the vehicle and if I don’t get it I walk. With good credit you can afford to do that.
Car dealers make big money on financing consumers. I know this too (sold vehicles at one time). Use your score and a preapproval as leverage. Most of the time dealers get locked into rates by their lenders or banks. This usually means they can’t match the financing you attracted. So, what you can do is have them discount the vehicle cost even more to make up for the financing differential. Then, do the math. If you are getting a solid discount take the loan. I did something similar when I purchased my latest vehicle and just paid off the note in full the next month. I saved some serious coin and stuck to my car loan free lifestyle. You get the best price. They think you’ll pay loads on interest on the backend of the deal. Nope!
Good FICO Score | Good Credit Score
Auto Insurance
Did you know that insurance companies factor your credit history into what you’ll be charged for premiums? No, it isn’t the only thing factored but it still makes up what is known as an “insurance score”. Good credit gets you lower premiums. One expert, Tom Quinn of Credit.com recommends that you pay attention if your FICO score rose by 50 points since your last renewal. You could save around $100 a year. Nice.
So, if you’ve got a solid credit score leverage it. A good FICO score saves you money if you take the time to use it to your advantage.
Source Material:
Mangla, Ismat Sarah. “Open Doors With Your Fico Score” Money- July 2011. Pg. 21-22. Print.
Click Here for the Best Books on Improving Your Credit Score
Related posts:
Recent Comments