What are Some Perks of Having Excellent Credit?

Written By Mary Beth Eastman
Last updated December 8, 2020

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buying a house
May 13, 2019

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Your financial life changes significantly when you move from having bad credit to good credit. Fair Isaacs considers credit scores higher than 740 as excellent credit. Scores between 670 and 739 are typically considered good credit scores. Americans scored an average FICO score of 704 in 2018. But a credit score of 669 is considered below average or even bad when your score reaches 579 or below. You’ll notice favorable housing opportunities when you have a good credit score, such as getting access to low-interest home loans. You’ll also put debt-induced anxiety at bay and build your confidence since you’ll be able to reach your financial goals more frequently.

But you can get an even better experience when you go from having good credit to excellent credit. That’s because you can take advantage of some great perks. Here are some of the perks you can look forward to on your journey to having excellent credit:

With excellent credit, you can expect better credit card offers. When you have excellent credit, you can easily get the lowest possible interest rates from top-rated credit cards from Mastercard or Visa and other major credit card providers. For example, you may receive credit card offers that provide an introductory zero-percent interest rate for 18 months compared to six or 12 months if you only had good credit.

You may also take advantage of the perks that come along with these low-interest credit cards, such as cash back rewards with higher earning potential or free insurance for items you purchase with your card.

You’ll typically need to run your credit for approval to rent an apartment and set up utilities, such as your electricity and water. You can expect to pay a deposit when renting your home, but having excellent credit gives you that added perk of paying less than other apartment applicants with average or low credit scores. You may even be able to avoid a deposit altogether for your utilities, too. That means you can save significantly on your moving costs.

Excellent credit also gives you more negotiating power to get better terms for a car loan or to lower an interest rate. You may also be able to refinance your home loan to save money on interest or negotiate for better interest rates for your credit card.

As you’re working towards having excellent credit, you can experience some great perks along the way. From better credit card offers to more negotiating power, having excellent credit often pays off. Just remember to continue to pay your bills on time and pay off outstanding debt to improve your chances of achieving excellent credit.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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