In the excitement of the 2014 World Cup competition, you might think nothing could be better than the U.S. team coming out on top. Perhaps you’ve forgotten about your personal finances. In between watching your favorite teams play, you need to start scoring with credit. Having great credit opens you up to a world of opportunity, and gets you approved for more things than you might expect. Here are three reasons why having an awesome credit score is better than the USA winning its first World Cup (although that would be pretty amazing, too!):
#1. You’ll get approved for the best credit terms.
Having an excellent credit score — or a score between 720 and 850 — will get you approved for the best terms on your credit accounts. These great terms likely include the lowest possible fixed interest rate. But who cares? A few percentage points difference in interest shouldn’t matter, right? Wrong!
If you finance a car with decent credit, you may be approved for the low interest rate of 3.99%. But if you finance with great credit, you may get an interest rate of 0.99%. This may not seem like a big difference, but let’s run the numbers. On a $15,000 car, financed over 60 months, your monthly payment would be $276 with the rate of 3.99%, or $256 with the rate of 0.99%. Over 60 months, this difference is $1,200, just in interest!
Let’s take it one step further. If you invest the $20 difference each month for 60 months, at a conservative rate of 5%, you’ll have accumulated an additional $192 in interest by the time your car is paid off. The difference between a decent score and a great one is $1,392 in this case. That’s enough to buy yourself seats to multiple games. Goooal!
#2. You’ll get the perks reserved for the financially responsible.
Aside from getting awesome terms, you’ll also be approved for other things. A great credit score opens the door to credit cards with the best benefits and perks. (Of course, this may be income-contingent for the “baller status” cards.) If you play it right, you may even be able to score free plane tickets to the next World Cup!
A great credit score may also get you a job and keep your car insurance rates low. It can get you approved for larger loans than borrowers with fair credit will be able to obtain, while keeping those loan terms reasonable. Having good credit means you’ll have options.
Having a great credit score gives you these benefits because your payment and credit habits suggest that you’re financially responsible, and therefore, responsible in general. This leads to perks — both monetary and otherwise — that wouldn’t be available to you if your credit was simply fair. Goooal!
#3. You’ll be more attractive to a potential mate.
I’m not saying he or she’s a gold digger, but according to a study by Experian, half of married adults said that good credit was an important factor in choosing a spouse. Financial compatibility in a spouse is actually very important, ranking just under family and life-goal compatibility, and even beating sexual, religious and political compatibility.
Being in good financial shape may be the difference between “happily ever after” and “I think we’re great as friends.” Because as romantic as it sounds to say that money is nothing as long as you have love, it’s just not true. Money may not buy happiness, but a lack of it can buy a fair amount of unhappiness — especially when it comes to relationships.
An excellent credit score opens you up to a world-class roster of potential life partners to watch the game with, who ideally also have great credit. A fabulous financial life and a smoking spouse? Goooal!
Bottom line: Great credit can get you the best terms on loans and perks reserved for the financially responsible, as well as make you a huge catch in the dating scene. Better yet, you don’t have to wait four years to start kicking butt in the credit department. Start scoring with credit today!
Brazil soccer player celebrating image via Shutterstock