4 Things to Do When Your Credit Score Reaches ‘Good’ or ‘Excellent’

Good Credit Score

Congratulations to you if your credit score has just reached good or excellent! It indicates that you are a responsible and dependable card holder and much desired customer for lenders. You are going to get many benefits on financial dealings. Now is the time to check how to take advantage of it. Here given some quick actions you can take-

 

Negotiate to refinance your loans and mortgages:

This is a huge opportunity for you to negotiate with the banks or financial institutes you are indebted to. You can lower the interest rates (e.g. a home loan) and renew your payment plan or the conditions.

Don’t double think to leverage a good credit report, because you are a solid customer as per the credit score and the lenders will consider that. For the same reason, you can use that score for new loans/financial activities as well.

 

Take the balance transfer opportunity:

It transfers all your credit cards debts to one single credit card which offers very low interest rate. One good way to clear your debts!

The best part of the balance transfer is not only it makes paying off the debts convenient but also saves your money in interest. To enjoy this facility your credit score has to reach “good”. Another exciting part is when you transfer the balance and clear your debts successfully; your “already good/excellent” score improves more.

Isn’t that amazing! Basically, you kill 3 birds with one stone.

 

Increase credit card limits:

When you have earned good or excellent credit score, you have earned some privileges as well. You can increase your credit limit by requesting the bank and they are less likely to decline it. In fact, they might do it automatically for you.

Remember, with increased credit limit, the balance to limit ratio (credit utilization ratio) can be increased which is important in calculating a credit score. A balance to limit ratio is how much you used on your credit card to the credit limit. A lower ratio is better.

 

Get cheaper car insurance: 

For the same reason already explained in first action, your good score can help you get cheaper car insurance. Insurance companies have their own calculation where credit score is counted and healthy score comes in favor of the card holder to get lower premium.

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