A credit freeze, also known as a security freeze, can help protect you from fraud and identity theft. Once a freeze is placed on your credit report, no one can get access to your credit file unless you lift the freeze using the personal identification number (PIN) given to you.
This restricted access also means that you need to lift your freeze for lenders and other companies to get access to your credit report, such as a credit card provider, insurance company, cell phone provider or even a potential employer that uses employment reports for background screening.
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Excellent Credit Score Checklist ✅
5) Easier Approval for Rental Houses and Apartments
More landlords are using credit scores to screen tenants. A bad credit score, especially if it’s caused by a previous eviction or outstanding rental balance, can severely damage your chances of getting into an apartment. A good credit score saves you the time and hassle of finding a landlord that will approve renters with damaged credit.
6) Better Car Insurance Rates
Add auto insurers to the list of companies that use a bad credit score against you. Insurance companies say that people with bad credit tend to file more claims and these people are penalized with a higher insurance premium. With a good credit score, you’ll pay less for insurance than similar applicants with lower credit scores.
7) Get a Cell Phone on Contract with No Security Deposit
Another drawback of having a bad credit score is that cell phone service providers may not give you a contract. Instead, you’ll have to choose one of those pay-as-you-go plans that have more expensive phones. People with good credit avoid paying a security deposit and may receive a discounted purchase price on the latest phones by signing a contract.
8)Avoid Security Deposits on Utilities
These deposits are sometimes $100 to $200 and a huge inconvenience when you’re relocating. You may not be planning to move soon, but a natural disaster or an unforeseen circumstance could change your plans. A good credit score means you won’t have to pay a security deposit when you establish utility service in your name or to transfer service to another location.
9) Bragging Rights
Because of all the benefits, a good credit score is something to feel good about, especially if you've had to work hard to take your credit score from bad to good. And if you've never had to experience a bad credit score, keep doing what it takes to maintain your good score.