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What can I do with an Excellent Credit Score?

It’s shocking to think about all of the things that suddenly become accessible when your credit score is good.

Without the facts, it's easy to fall into the trap of seeing credit as fake, or a system ran by the man. The thing about it is, it's too easy to have good credit if you do it right. A lot of millennials weren’t properly educated about credit, but it's not too late to turn it around, and it's not too late to educate your kids. 




If you learn about and manage your credit from the start, a  good credit score is easily attainable and comes with perks. Before we jump into all of the things you can do when your credit scores good, let's establish exactly what is good credit. There are lots of businesses out there promising credit repair. You see the people around you turning their scores around, and you wonder if it's worth the time and effort to try and fix yours. The short answer is, yes. Start by assessing where your current score is. 




What’s a good credit score?

Credit scores are based on a system of 300-850 points. The points are given and taken away based on borrowed money, and your ability to pay it back. It’d be advantageous to pay it back on time, as paying your bills on time is one of the easiest ways to increase your credit score. Here’s a breakdown of what your score means:






350 - 579 Poor

580 - 669 Fair

670 - 739 Good

740 - 799 Very Good

800 - 850 Excellent









As you can see, over 65% of Americans fall into the Good to Excellent credit score range. If you fall into the Poor or Fair range, there are ways to increase your credit score which we've detailed in this list on ways to improve your credit.  





Convinced of the importance of good credit yet? Well here are some of the benefits that come with access when your credit scores good:




  1. Low-interest rates - any loan you acquire will require you to pay interest. That’s how banks and financial instructions make their money. The thing is if you are a high-risk borrower, you’re likely to experience high-interest rates. Simply put, banks and financial institutions fear that they may not get repayment. Interest is a way to tack the fees on the front end. Think about those car lots that advertise approvals for even those with bad credit. 1) There’s a chance they plan to run your credit multiple times to find any bank to lend to you. Secondly, you can expect sky-high interest rates. 

  2. Better terms/ availability on loans - There will always be more people/businesses than there are loans to go around. The most recent example of this was the PPP loans and how quickly they were dispersed leaving many businesses out. Many businesses were denied due to no credit or bad credit. Therefore, when applying for loans, you can put yourself ahead of the competition with a good credit score. You can also negotiate better terms like having to prove less in liquid assets, longer repayment periods, and smaller interest rates. 

  3. Better credit card access - When a person's credit score is good they get access to all of the best credit cards with high minimums, and plenty of perks. Bad credit can prevent you from getting a credit card. Yes, your credit score can begin before you ever have a credit card. Utilities, cable bills, medical bills, student loans, auto loan bills all qualify as entities reported to credit bureaus. If you make a habit of paying late or defaulting on loans you run the risks of ruining your credit. 

  4. Better insurance rates - It’s all about being low-risk. Insurance companies want to know that they are insuring a stable person. A person with bad credit seems financially irresponsible, and someone unable to make payments on time seems risky. What else might they forget to do, stop at a Stop sign? Might sound like a reach, but again low credit score = risky. Having a low credit score is a tough predicament to be in because it affects more than just the financial aspects of life. Know better and do better. 

  5. Fewer security deposits/ lower down payments - typically down payments and security deposits are the same and vary based on the amount of the loan. However, a higher down payment or deposit may be required for those with bad credit. Think about renting an apartment. You may be approved with a lower credit score, but a landlord or apartment community could ask you for a greater security deposit. 

  6. Best perks and rewards - This is probably one of the best parts of having good credit and using a credit card. Many major credit cards offer perks and rewards. If you can pay it off right away, many people purchase items with their credit cards just to get cashback or other rewards. There are also credit cards that partner with your favorite retailers to offer a good amount of brand-specific perks. Get that free flight, the discounted TV, or even a raised minimum. You earned the perks, you deserve to use them. 

  7. Develops a good financial reputation - If nothing else, it's good to remain in good financial standings because you never know when you may find yourself in a predicament in which you need to borrow money. Medical bills, home repairs, auto loans, and more are all examples of loans you might seek from your bank. As always, if you stay ready, you don't have to get ready. 





Good credit has many benefits. If your credit still has room for improvement, don't fret. Check out this blog detailing simple steps to increase your credit score. If you're seeking professional help to turn your credit around and experience the financial freedom you deserve, schedule a consultation here. 





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Thanks for reading. Madison’s Accounting and Tax Services is a financial service provider that specializes in helping beauty brands control and grows their financial power, while also passionately providing financial knowledge and resources to communities in local Midwest communities. If you enjoyed this blog please subscribe and share.




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