A credit score determines a person's credit worthiness. It measures how well you were able to pay back your previous loans and debts. With a high credit score, you are showing the banks and lenders that they will have lower risk in lending you money. Therefore, you will be able to do or have the following:
1. Lower interest rates - you are in the position to negotiate for a better rate because of your good credit profile. With lower risk at hand, the lenders and banks are in the position to give you lower interest rates.
2. Access to more loan products - with a high credit score, you will be able to access all types of credits, including credit cards and loans.
3. Lower fees - lenders usually charge higher fees to those with bad credit scores, with your good to excellent credit score, lenders will see that there is no need for this.
4. Higher loan amounts - with good credit score, you will be able to apply for higher loan amounts compared to what you can avail with your income and savings. You will also have higher credit limit on your credit cards.
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