A high credit score is commonly associated with better loan terms and lower interest rates. However, there are many lesser-known benefits to having a solid credit score.
According to CNBC, nearly half of Americans have a credit score of 750 or higher. Let’s see how you can use this to gain more benefits.
We came across a Reddit discussion on some lesser-known benefits of a high credit score. And here are the top picks:
1. Waive Security Deposit
When we look for new apartments, we end up paying at least 1 month’s rent as a security deposit. This can be a lot for many!
“Waives security deposits at some apartment complexes,” shared one a user confirmed, saying,” can confirm. Security deposit was waived at the current apartment”
“Oh man, I totally forgot about this. When I put in the application to rent this place (2016), they told me that if my credit was above 750, I’d be auto-accepted and wouldn’t have to put any security deposit down. They weren’t lying,” added another.
This may only be the case in some states. However, it is worth mentioning and talking about with the apartment manager. Besides this, you can also get preferential treatment as a potential tenant and negotiate a lower rate.
One user shares,
“Not OP, but back when I was shopping for apartments, I had 846 on Vantage and 884 on FICO, which granted me some perks such as:
- Reservations – other applicants would only get called after I decide to accept/decline… pretty insane to me since they’re willing to take a hit on reviews on google/yelp/etc. for not responding to applicants.
- waived security deposits and sometimes even the first two months’ rent
- negotiable lower rent.“
2. Lower Car Insurance Rates
Higher scores can lead to lower insurance rates, shared by a user and confirmed by another. However, remember this is available only in a few states.
“Your car insurance rates are partially based on your credit score,” shared one. “Higher scores can lead to lower insurance rates,” added another.
3. Lose Job Opportunities
“Not sure if lesser known, but an employer’s background check could include your credit score. Lower scores can put you out of the running for jobs in which you could steal or embezzle money,” shared a user.
While it is illegal in a few states, federally, it is allowed. However, one user shared:
“There’s a loophole, and companies can hire consultants companies for such work. If the consultant’s credit score/history is terrible, the client will not accept that consultant for the project.
Source: I worked for an IT consulting firm with several banks as clients. Know a few people who were taken off teams because of poor credit before they even started projects.”
4. Waiving Security Deposits On Utilities
If you have a bad score, you will almost always have to pay security deposits or use pay-as-you-go plans (which are expensive). With a good credit score, you can negotiate and have this waived. Similarly, you can save money on security deposits for utilities like gas and electricity.
“Completely eliminate the need for deposits at utilities, cell service, and landlords,” shared one.
There you go; these are the lesser-known benefits of a high credit score. Totally worth it to work towards it. We hope you enjoyed this discussion, and don’t forget to read 25 People Share The Most Desperate Thing They Did For Money.