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A good credit history is the mark of a creditworthy individual. The whole business of lending, whether it is personal loans, mortgage or credit cards, revolves around how creditworthy the individual is. That in turn determines the terms and conditions for lending. In fact, in the present situation, following recession, the dependence on the credit history of an individual has increased even more. That is why every person should try to push their credit score over 600, which is considered to be good, although there are individuals with excellent credit scores over 720 out of a possible 800. Here are some of the benefits of having a good or excellent credit history.

Credit cards with low interest and excellent rewards

Every time you spend on a credit card, you are incurring a debt. You will get around 20 – 25 days as grace period after the billing cycle to pay off this debt without incurring any interest. The APR on a credit card is the interest rate charged on the outstanding balance after the due date. However, if you have an excellent credit history, this APR will be very low. In some cases, it is even lower than the normal personal loans that one avails thus allowing you to use the credit card for your small business, if any. Similarly, a lower interest means more saving especially if you have major expenses once in a while. Those with excellent credit history also get the best credit card rewards including opening bonuses, air miles, travel benefits and cash back offers.

Loans at low interest

Those with excellent credit history find it easier to get loans from the bank, whether for mortgage or for personal reasons. Not only is it easier, it also helps in procuring loans at lower interests which helps you save a lot in terms of long term mortgages, sometimes in the tune of thousands of dollars.

Insurance premiums

A person with good credit history is considered to be less reckless and more mature. Such customers find that their insurance premium too is lower than that of others. This is because insurance providers find that the risk associated with such individuals of being involved in an accident is much lower than normal cases.

Other benefits

Even companies offering jobs and landlords offering posh homes look for an individual’s credit history to ensure that he or she has the discipline and maturity required in order to be trusted.