10 Hidden Advantages of a High Credit Score

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A high credit score is a goal for many people – not just for the number itself, but the perks that come with it. Everybody knows the well-known benefits of a high credit score: namely, a lot of credit to draw from and tangible proof to creditors that show that you pay your bills on time.

However, a high credit score can offer more than just those obvious perks.

In fact, some of these little-known benefits could have huge ramifications on your financial well-being.

1. Waived Security Deposits

It’s true: many apartment rental complexes waive security deposits if your credit score is high enough. How’s that for a little-known perk?

“They straight up told me when I put in the application to rent this place (2016) that if my credit was above 750 that I’d be auto-accepted and wouldn’t have to put any security deposit down,” one renter revealed. “They weren’t lying.”

2. Better Rewards Credit Cards

Imagine a world where approval for nearly every credit card is easily within reach. That’s exactly what can happen when your credit score gets high enough – you’d essentially have your choice of any credit card you want.

Having the ability to personally curate your credit card collection and reap the benefits of many rewards cards was mentioned by countless people as one of the unheralded amazing benefits of a great credit score.

3. Job Opportunities

Doors to new and exciting job opportunities are opened to you as a result of high credit scores as well. “If you work in finance at all, or any leadership, your employer will run a credit check with the legal background check,” one banker said.

“Of course, they do not want a litigious employee, they also do not want one that has other issues with finances.” Talk about setting yourself up for success!

4. Lower Auto Insurance Rates

Even your auto insurance can benefit from being attached to an account with a high credit score. (We’re starting to think this whole “work towards getting a great credit score” has some merit, people!)

“My wife works for a state farm, and rates can be significantly higher with a low credit score,” somebody in the know revealed.

5. Benefits When Buying a House

While many people begin to panic if they do not have a large down payment for their first home, one savvy individual revealed that it’s a moot point if your credit score is high enough: “If you don’t have 20% for a down payment on a house, having a high credit score makes PMI on the mortgage almost negligible. I always thought it would add like $200-$300/month to our payment to have PMI but since we have excellent credit it will only be like $40.”

It sure makes homeownership a lot more feasible, doesn’t it?

6. Not Needing a Co-Signer For Loans

Many people have been in a situation where they’ve needed to convince a friend or relative to co-sign a loan with them. We’ll be honest: we’ve been there, and it’s an awkward conversation to have!

Luckily, having a high credit score means that you’ll never have to make an embarrassing phone call like that, ever.

7. Ability to Churn Credit Cards

The art of credit card “churning” is when you keep opening and closing credit cards – but keeping their often-generous sign-up bonuses in the process! One particular person has this system down pat, and he wasn’t afraid to brag about it. “I have 14 cards and haven’t paid out of pocket for a vacation in half a decade (including what would have been a ~$10k honeymoon that we booked using the points off a $95 annual fee card),” he confessed.

“Credit score has never dipped below 780 (just make sure to pay off all the cards and track them).”

8. Security Clearance