How to Take Advantage of Good Credit

Buying a home

Use your score to lower lifetime housing costs

Great credit (often 760+) earns the best mortgage rates and terms—translating into tens of thousands saved over 15–30 years.

How good credit helps

• Best rates: Qualify for the lowest APRs and smaller monthly payments.
• Negotiating power: Competing lenders may cut rates, fees, or closing costs.
• Lower PMI: If you’re under 20% down, strong credit can reduce mortgage insurance.

Quick moves

• Get preapproved with multiple lenders. Rate shopping within ~14–45 days usually counts as one inquiry.
• Refinance later if your score improves—locking a lower rate can create large long-term savings.

Buying a car

Cut interest and gain leverage at the dealership

Excellent credit unlocks the most competitive auto APRs and avoids costly “high-risk” loans.

How good credit helps

• Lower APR: Save hundreds or thousands over the life of the loan.
• Stronger negotiating: Walk in with preapproval to pressure dealer financing.
• Refi potential: Improved credit later? Refinance to drop your rate.

Quick moves

• Compare offers from banks and credit unions before accepting dealer terms.
• Seek promos: Scores ~700–750+ can qualify for manufacturer 0% APR specials on select models.

Getting a business loan

Open doors to affordable capital and growth

Many lenders review personal credit (often 680+). Strong personal and business credit expands options and lowers costs.

How good credit helps

• Higher approvals: Clear more bank and SBA underwriting hurdles.
• Better terms: Lower rates, longer maturities, and flexible structures.
• More options: Access lines of credit, equipment loans, and term loans on favorable terms.

Quick moves

• Build business credit separate from personal (vendor accounts, on-time payments).
• Leverage personal score to secure an initial bank loan, then use it to establish business history.
• Refinance as scores improve to reduce costs and free up cash flow.

Note: Rates, products, and score thresholds vary by lender and market. Always confirm current terms on the lender’s site.