Why your credit score matters: Pros vs Cons

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When you have good credit, you are more likely to get approval for loans and credit cards with lower interest rates.

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Here is a comparison of the pros of having a good credit score vs the cons of having a bad credit score.

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A good credit score may vary depending on the lender. The generally accepted good FICO score is 670 or higher.

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When you have a higher credit score, like 670 or higher, the pros or advantages of that credit score are:

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• Easier credit approval • Lower interest rates • Higher credit limits • Better loan terms • Low or no deposits

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When you have a lower credit score, like 669 or lower, the cons or disadvantages of that credit score are: 

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• Harder credit approval • Higher interest rates • Lower credit limits • Difficulty getting loans • Higher security deposits

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Clearly the pros outweigh the cons, so it makes sense to improve your credit score by paying your bills on time.

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Review your credit report to tackle the factors that are hurting your credit score the most and scale up.

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