Have a Good Credit Score? Put it to Work During Inflation
Each credit scoring model has a different numerical range for what they consider a “good” credit score. But generally, around 700 or above fits the bill. Falling within this range opens the door to better financial opportunities. During inflation, it can also help you get ahead.
3 advantages of a good credit score during inflation
1. Better rates
Lenders often offer better rates on borrowing products to applicants with a good credit score. That’s because a favorable score indicates positive credit habits, like a history of on-time payments. For credit cards, a lower annual percentage rate (APR) means rollover balances will incur less interest and make debt payoff more manageable. The less money spent on debt payoff, the more you’ll have in your pocket to make ends meet.
Inflation also makes borrowing for large purchases like a home or new or used car more expensive. But that doesn’t mean you have to wait to apply for a mortgage or auto loan. A good credit score gives you access to competitive rates that may help offset the heightened cost of borrowing.
Individuals with bad credit may not get approved for credit cards with low rates and premium perks like the ability to earn points or cash back on purchases. What does inflation have to do with this? Well, one of the hardest-hit consumer goods during inflation is groceries – a category that just so happens to be a popular earning category for many points and cash back credit cards. Your good credit score means you’ll likely get approved for the majority of borrowing products out there and can start taking advantage of rewards on purchases you were going to make anyway.
While a good credit score may have allowed you to get a good rate on a borrowing product now, it may be beneficial to look at rates in the future once inflation cools off. That’s because you may be able to refinance a mortgage, auto, or personal loan and lower your monthly payment. With a good credit score in your tool kit, you’ll have your pick of the litter as you research the best refinancing options.
At GECU, our members have access to borrowing opportunities and tools that give their budget’s an edge during periods of inflation and beyond. From cash back and points-earning credit cards to competitive mortgage, car loan, and credit card rates, we know you’ll love being a member of Cincinnati’s Best Credit Union. Membership eligibility is simple – you just need to live, work, worship, or attend school in select Ohio, Indiana, or Kentucky counties. Then, go online to apply for membership and open an account(s) in minutes!