So you’re looking to buy a car? Well if you have good credit you’re in luck. There are so many advantages you should know about – taking out a loan, insurance, etc. is so much easier (and cheaper) when you have good credit. What is a good credit score? If you are using the FICO® credit rating system, anything from 700 up means you’re a great candidate. Remember though, it is the lending company that determines your risk assessment and just because FICO® deem you risk free does not mean they will.
If you’re credit rating leaves a lot to be desired, fear not, there are plenty of ways for you to improve it! There are plenty of incentives to improve it too and we’ve listed them here:
No Hassle Approval
When you apply for a car loan with a good credit rating, the likelihood is that you will be approved. No sweating involved, no trying to figure out alternatives, you should be approved hassle free!
Low Interest Rates
When you do not pose a risk to a lender, they will give you their best rates. You have proved in the past that repayments are not an issue and therefore they shouldn’t be this time either! They will offer you the lowest interest rates they can. Remember though, always check the terms and conditions in case there are any hidden fees. And always shop around, another company might give you an even lower rate.
Minimize Insurance Pay Out
Insuring your car will be just as easy as applying for the loan for it, so long as you are a responsible driver that is. A good credit score signifies that you are less likely to file a claim with your insurance provider therefore lowering your premium significantly. Insurance companies give all kinds of discounts to customers they believe are low risk; find out more here.
So there you have it, a good credit score wins you more than just a pat on the back. It saves you money in the long-run and makes life a hell of a lot easier. Do remember to check out lots of lending companies and insurance providers though, you can generally get a better deal when you shop around!
Featured Image: Thinkstock/ Glynn Burrows