0.88 per cent to 1.03 per cent1724 to 1754If your score is nearer to 2000, you’re in the pink of financial health, with a low risk of default. If your credit score is closer to 1000, it means that you might be at higher risk of defaulting. But what benefits does a good credit score provide you?The interest rate is one of the costs you pay for borrowing money and the interest rate you get is often directly proportional to your credit score.
However, having an excellent credit score does not guarantee approval, because lenders still consider other factors, for instance, your income and outstanding debt. However, a good credit score increases your chances of being approved for new credit. In other words, you can apply for a loan or credit card with confidence.
One of the benefits of having a good credit score is that banks are willing to let you borrow more money because you have demonstrated that you pay back what you borrow on time. You may still get approved for some loans with a bad credit score, but the amount will definitely be more limited.A good credit score gives you leverage to negotiate a lower interest rate on a credit card or a new loan.
As such, they will penalise people who have low credit scores with higher insurance premiums. With a good credit score, you will typically pay less for car insurance than similar applicants with lower credit scores.As you can see, there are many benefits in keeping up a high credit score. But how does one go about doing that? Here are two of the most common ways people maximise their credit rating.