Lower interest rates on credit cards
One way a good credit rating can save you money every month is on credit card interest. “Good credit can help you get lower rates on credit cards, which can save you money on interest if you have a balance,” says Louis DeNicola, a personal finance and credit writer. Of course, when it comes to credit cards, your best bet is to pay your balance in full monthly. Not only will this strategy help you avoid high interest charges, but it will generally help improve your credit scores and provide you with even more opportunities to save. Pay attention to these sneaky things that could lower your credit score.
Better auto credit
There’s no doubt that having a good credit score could equal big savings on your car loan – good credit could even save you thousands of dollars over the life of the loan. John Vincent, report for US News and World Report, writes that a “Deep Subprime buyer would have to pay more than $8,000 in additional interest over the six-year term of the auto loan [in Vincent’s example] due to high interest financing, and their monthly payments would be $128 higher than a borrower with excellent credit. »
Not only can the monthly payments and overall interest be higher on your auto loan when you have less than stellar credit scores, but you might also be asked to provide a larger down payment and have less favorable loan terms. Vincent also writes, “It would not be unusual for this Deep Subprime borrower to be forced to put more money aside and also take on a shorter loan term.