The benefits of developing a good credit history


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » The benefits of developing a good credit history

The benefits of developing a good credit history

Updated: September 28, 2018

The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Score Makeover: How to Get a High Score from the Credit Bureaus

Credit Score Makeover: How to Get a High Score from the Credit Bureaus

Posted: September 28, 2012

Achieving a high credit score is easier to do when you know what factors go into your score, and what matters most. This credit score tune-up guide reveals which factors carry the most weight when credit bureaus calculate your credit… Continue reading

Loan Repayments After College

Posted: October 18, 2011

Like everything else, student loan debt is on the rise. In fact, student loan debt increased 10 percent each year from 2000- 2010. This is in part to rising tuition and living costs, and students` general lack of knowledge when it comes to… Continue reading

Easy Financial Resolutions To Keep In The New Year

Posted: January 21, 2012

The time has come to start thinking about resolutions to make for 2012. Aside from studying more, getting better grades and skipping fewer early morning lectures, college students should give some serious thought to adding a few personal… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!