What Can I Do With A Very Good Credit Score?

Having a very good credit score opens a world of financial opportunities. It signifies responsible borrowing and repayment, making lenders eager to offer you favorable terms. This guide explores the significant advantages and actionable steps you can take to leverage your excellent credit standing in 2025.

Unlock Better Loan Terms and Rates

A very good credit score, typically ranging from 740 to 799 according to FICO scoring models, is your golden ticket to the most competitive loan offers. Lenders view individuals with scores in this range as low-risk borrowers, meaning they are more likely to repay their debts on time. This perception translates directly into tangible financial benefits, primarily in the form of lower interest rates and more favorable loan terms across various types of borrowing.

Personal Loans: More Options, Lower Costs

When you need funds for debt consolidation, home improvements, medical emergencies, or significant purchases, a very good credit score dramatically expands your options for personal loans. You'll qualify for a wider array of lenders, including credit unions and online lenders known for their competitive rates. The interest rates offered to individuals with excellent credit are significantly lower than those for borrowers with average or poor credit. For instance, in 2025, a personal loan with a score above 740 might secure an annual percentage rate (APR) as low as 6-10%, whereas someone with a score in the 600s could face rates of 15-30% or even higher. This difference can save you thousands of dollars over the life of a loan.

Consider a $10,000 personal loan with a 5-year repayment term. With a 7% APR (achievable with a very good credit score), your monthly payment would be approximately $193, and the total interest paid would be around $1,580. If your credit score were lower, leading to a 15% APR, your monthly payment would jump to about $233, and the total interest paid would skyrocket to approximately $3,980. That's a difference of over $2,400 in interest alone.

Auto Loans: Drive Away with Savings

Purchasing a vehicle is a major financial decision, and your credit score plays a crucial role in the cost of financing. With a very good credit score, you'll be eligible for the lowest available APRs on auto loans. This means your monthly car payments will be lower, and you'll pay less interest over the loan's term. In 2025, top-tier auto loan rates for excellent credit scores often hover around 4-6% for new cars and 5-7% for used cars. A borrower with a less stellar credit score might see rates of 8-12% or more.

Let's illustrate with a $30,000 car loan over 60 months. At a 5% APR (typical for very good credit), the monthly payment is about $566, with total interest of $3,960. At an 11% APR (more likely for fair credit), the monthly payment increases to $627, and the total interest paid is $7,620. The savings with a good credit score are substantial – over $3,600 in this scenario.

Student Loans (Private): Manage Educational Debt

While federal student loans offer fixed rates and borrower protections regardless of credit score, private student loans often require a credit check. A very good credit score can help you secure private student loans with lower interest rates, which is particularly beneficial for graduate studies or when federal loan limits are insufficient. These savings can significantly reduce your long-term debt burden after graduation.

Comparison of Loan Rates by Credit Score (Estimated 2025 Averages)

credit score range	Personal Loan APR (Estimate)	Auto Loan APR (Estimate)
Excellent (800+)	5.0% - 8.0%	3.5% - 5.5%
Very Good (740-799)	6.0% - 10.0%	4.0% - 6.0%
Good (670-739)	10.0% - 15.0%	6.0% - 9.0%
Fair (580-669)	15.0% - 25.0%	9.0% - 14.0%
Poor (<580)	25.0%+	14.0%+

Note: These are generalized estimates and actual rates can vary based on lender, loan term, loan amount, and economic conditions.

Qualify for Prime Mortgage Options

For most people, a mortgage is the largest debt they will ever incur. Therefore, securing the best possible interest rate on a home loan is paramount. A very good credit score is not just a requirement for mortgage approval; it's a gateway to the most attractive mortgage products and rates available in the market. Lenders consider creditworthiness a primary indicator of your ability to handle a long-term, substantial financial commitment like a mortgage.

Lower Interest Rates Mean Significant Savings

The impact of your credit score on mortgage interest rates is profound. Even a small difference in the Annual Percentage Rate (APR) can translate into tens of thousands, or even hundreds of thousands, of dollars saved over the 15- to 30-year life of a mortgage. In 2025, borrowers with very good credit scores (740+) are typically offered interest rates that are 0.5% to 1.5% lower than those offered to borrowers with good credit (670-739), and significantly lower than those with fair credit.

Let's consider a $400,000 mortgage over 30 years. With a 6.5% APR (typical for a very good credit score), your monthly principal and interest payment would be approximately $2,528. The total interest paid over 30 years would be around $510,080. Now, imagine a slightly higher rate of 7.5% (which a borrower with good but not excellent credit might face). The monthly payment rises to $2,794, and the total interest paid balloons to $605,840. This difference of over $95,000 in interest is a direct benefit of having a very good credit score.

Access to a Wider Range of Mortgage Products

Beyond just rates, a very good credit score can qualify you for a broader selection of mortgage products. This includes:

Conventional Loans: These are not backed by government agencies and often have the most competitive rates for well-qualified borrowers.
Jumbo Loans: For loan amounts exceeding conforming limits set by Fannie Mae and Freddie Mac, a very good credit score is often essential for approval and favorable terms.
Lower Private Mortgage Insurance (PMI): If you're putting down less than 20% on a conventional loan, you'll typically need to pay PMI. A higher credit score can lead to lower PMI premiums, further reducing your monthly housing costs. For example, someone with a score above 740 might pay PMI at a rate of 0.5% of the loan amount annually, while someone with a lower score might pay 1% or more.

FHA Loans and VA Loans Considerations

While FHA loans are designed for borrowers with lower credit scores (some FHA-approved lenders accept scores as low as 500), having a very good credit score can still be advantageous. It might allow you to secure better terms or avoid certain lender overlays. For VA loans, which are guaranteed by the Department of Veterans Affairs, credit score requirements are often more flexible, but lenders still use them to determine risk. A very good score will streamline the approval process and ensure you get the best possible rate from the lender.

The Importance of a Pre-Approval

With a very good credit score, getting pre-approved for a mortgage is a powerful step. It allows you to know exactly how much you can borrow and at what rate, strengthening your negotiating position when you find a home. This process is typically smoother and faster for borrowers with excellent credit histories.

Access Premium Credit Card Rewards and Benefits

Credit cards are more than just a payment tool; they can be a source of significant rewards and benefits, especially for individuals with a very good credit score. Lenders offer their most lucrative credit cards to those who demonstrate a strong track record of responsible credit management. This means you can access premium travel perks, generous cashback programs, and valuable sign-up bonuses that can significantly offset your spending.

Premium Travel Rewards Cards

These cards are often targeted at individuals who travel frequently. With a very good credit score, you'll qualify for cards offering:

Generous Welcome Bonuses: Many cards offer tens of thousands of bonus points or miles after meeting an initial spending requirement. These can be redeemed for free flights, hotel stays, or statement credits.
High Earning Rates: Earn 3x, 4x, or even 5x points/miles on specific spending categories like travel, dining, or groceries. Some cards offer unlimited 2x points on all purchases.
Airport Lounge Access: Complimentary access to exclusive airport lounges worldwide, offering a more comfortable and productive travel experience.
Travel Credits: Annual credits for airline fees, Global Entry/TSA PreCheck applications, or hotel stays.
Elite Status: Some cards offer automatic elite status with hotel chains or car rental companies.
Travel Insurance: Comprehensive coverage including trip cancellation/interruption insurance, lost luggage reimbursement, and rental car insurance.

Examples of cards that typically require excellent credit include the Chase Sapphire Reserve, American Express Platinum Card, and Capital One Venture X Rewards Credit Card. These cards often come with annual fees, but the value of their rewards and benefits can easily outweigh the cost for those who maximize them.

Lucrative Cashback and Rewards Programs

If travel rewards aren't your primary focus, you can still benefit from excellent credit by securing cards with top-tier cashback or flexible rewards programs:

High Cashback Rates: Cards offering 2% cashback on all purchases, or 5% cashback on rotating quarterly categories (like gas, groceries, or Amazon purchases) after meeting a spending cap.
Redemption Flexibility: Easily redeem rewards for statement credits, direct deposits, gift cards, or merchandise.
No Annual Fee Options: Many excellent cashback cards come with no annual fee, making them a cost-effective way to earn rewards on everyday spending.

Cards like the Citi Double Cash (2% back on all purchases), Chase Freedom Flex (5% on rotating categories), and Discover it Cash Back are popular choices for those seeking straightforward rewards.

0% Intro APR Offers

A very good credit score also makes you a prime candidate for credit cards offering 0% introductory APR periods on purchases and balance transfers. These can be invaluable for:

Financing Large Purchases: Buy a new appliance or furniture and pay it off over several months without incurring any interest charges.
Consolidating Debt: Transfer high-interest credit card balances to a new card with a 0% intro APR, giving you time to pay down the principal without interest accumulating. Be mindful of balance transfer fees, which typically range from 3% to 5%.

These offers can range from 12 to 21 months, providing a significant window to manage your finances without the burden of interest.

Building Credit History

Even with a very good score, continuing to use credit responsibly and managing your credit card utilization effectively is key. Applying for new cards strategically can help you diversify your credit mix and potentially increase your overall credit limit, which can further improve your credit utilization ratio.

Explore Investment Opportunities

While a very good credit score doesn't directly grant access to exclusive investment funds, it significantly influences your ability to invest by making borrowing cheaper and more accessible. This can be a powerful tool for accelerating wealth accumulation through various investment strategies.

Leveraging Margin Accounts for Investing

Brokerage firms offer margin accounts, which allow you to borrow money from the brokerage to invest in securities. The interest rate on margin loans is typically tied to the broker's prime rate. Individuals with excellent credit are more likely to be approved for margin accounts and may even qualify for lower margin rates. By using leverage, you can potentially amplify your investment returns. However, it's crucial to understand that leverage also amplifies losses, making it a strategy best suited for experienced investors who understand the risks involved.

In 2025, margin rates can range from 6% to 12% or more, depending on the account balance and the borrower's creditworthiness. A very good credit score can help secure rates closer to the lower end of this spectrum.

Securing Loans for Real Estate Investment

Real estate is a popular investment vehicle. With a very good credit score, you can secure favorable terms on investment property loans. These loans might have slightly higher interest rates than primary residence mortgages, but a strong credit profile will still lead to the most competitive options available. This allows you to acquire rental properties or fix-and-flip opportunities with lower borrowing costs, thereby increasing your potential return on investment (ROI).

Business Loans for Entrepreneurial Ventures

If you're looking to start or expand a business, a very good credit score is invaluable for securing business loans. Lenders assess personal credit history heavily, especially for small businesses or startups. A high score demonstrates financial responsibility, making it easier to get approved for loans needed to fund inventory, equipment, or expansion. Lower interest rates on business loans mean more of your revenue can be reinvested into growth rather than servicing debt.

Home Equity Lines of Credit (HELOCs) for Investment Capital

If you own a home with significant equity, a HELOC can be an excellent source of capital for investments. A very good credit score will help you qualify for a HELOC with a competitive interest rate. You can then use these funds for various investments, such as stocks, bonds, or even another real estate property. It's important to remember that a HELOC uses your home as collateral, so it carries inherent risks.

Understanding the Risks of Borrowing to Invest

It's vital to approach borrowing for investment with caution. While a very good credit score makes it easier and cheaper to borrow, you must have a solid investment strategy and risk tolerance. Never borrow more than you can afford to repay, and ensure your potential investment returns are likely to exceed the cost of borrowing. Diversification and thorough research are key to mitigating investment risks.

Secure Rental Properties with Ease

Landlords and property managers often use credit checks as part of their tenant screening process. They want to ensure that prospective tenants are financially responsible and likely to pay their rent on time. A very good credit score acts as a strong endorsement of your reliability, making you a highly desirable tenant.

Standing Out in a Competitive Rental Market

In desirable urban areas or during peak rental seasons, competition for apartments and houses can be fierce. Having a very good credit score can give you a significant edge over other applicants. Landlords may see your application as less risky, potentially prioritizing you over applicants with lower scores, even if they applied first.

Waiving or Reducing Security Deposits

Many landlords require a security deposit, typically equivalent to one or two months' rent, to cover potential damages or unpaid rent. For tenants with excellent credit, some landlords may be willing to waive this deposit entirely or reduce the amount required. This can free up a substantial amount of cash for you when you move in, easing the financial burden of relocation.

Qualifying for Higher-End Rentals

Properties in more upscale neighborhoods or those managed by larger, more selective property management companies often have stricter screening criteria. A very good credit score is frequently a prerequisite for approval in these situations. It signals that you are a responsible individual who will likely take care of the property and fulfill your lease obligations.

Avoiding Co-Signer Requirements

If your credit score is not strong, landlords may require you to have a co-signer—someone with a good credit history who agrees to be responsible for the rent if you fail to pay. With a very good credit score, you can bypass this requirement, making the rental application process simpler and avoiding the need to ask a friend or family member for assistance.

Renting Commercial Properties

The benefits extend beyond residential rentals. If you're looking to rent commercial space for a business, a very good credit score can help you secure leases for retail locations, office spaces, or warehouses. Landlords of commercial properties are particularly keen on ensuring financial stability from their tenants, as lease agreements are often long-term and involve significant financial commitments.

Avoid Security Deposits on Utilities and Services

Setting up essential services like electricity, gas, water, internet, and even mobile phone plans often involves a credit check. Utility companies and service providers use these checks to assess the risk of non-payment. For individuals with a very good credit score, this typically means you can establish service without paying a security deposit, saving you upfront costs.

Electricity, Gas, and Water Services

When you move into a new home, you'll need to set up these fundamental utilities. Without a security deposit, you can avoid paying anywhere from $50 to $300 or more per service, depending on the provider and your location. This can be a significant saving, especially if you're setting up multiple services simultaneously.

Internet and Cable/Satellite TV

Providers of internet and entertainment services also often require a security deposit, particularly for new customers or those without a strong credit history. A very good credit score usually exempts you from this requirement, allowing you to get connected without an additional upfront expense.

Mobile Phone Plans

Major mobile carriers also perform credit checks. If your score is very good, you'll likely qualify for the best phone plans without needing to pay a deposit. This can also be crucial when signing up for new lines of service or purchasing expensive new devices on installment plans, as a good credit score often unlocks favorable financing options or waives the need for a down payment on the phone itself.

The Rationale Behind No Deposits

Utility and service providers view individuals with very good credit scores as low-risk. They have a proven history of meeting their financial obligations, so the providers are confident that they will pay their bills on time. This confidence allows them to forgo the security deposit, which is essentially an insurance policy against non-payment.

Benefit from Lower Insurance Premiums

In many states, insurance companies use credit-based insurance scores to help determine premiums for auto, home, and renters insurance. This practice is based on statistical data showing a correlation between credit history and the likelihood of filing an insurance claim. A very good credit score can translate into significant savings on your insurance policies.

Auto Insurance Savings

When you apply for auto insurance, the company will often pull your credit report to generate an insurance score. A higher score generally leads to lower premiums. This is because insurers believe that individuals with better credit management habits are also more likely to be safer drivers and less likely to file claims. In 2025, the difference in premiums between someone with excellent credit and someone with poor credit can be hundreds, or even thousands, of dollars per year.

Homeowners and Renters Insurance Discounts

Similarly, for homeowners and renters insurance, a good credit history can result in lower premiums. Insurers use credit-based scores to predict the likelihood of claims related to property damage, theft, or liability. A very good credit score signals to the insurer that you are a responsible individual, which can translate into a discount on your policy.

How Credit Affects Insurance Premiums

The exact impact of credit scores on insurance premiums varies by state and by insurance company, as some states restrict or prohibit the use of credit information in setting rates. However, where it is permitted, the correlation is well-established. Insurers see a statistically lower risk of claims from individuals with higher credit scores. This reduced risk allows them to offer more competitive pricing.

Shopping Around for the Best Rates

Even with a very good credit score, it's always wise to shop around for insurance. Different companies weigh credit information differently, and you might find better rates by comparing quotes from multiple providers. However, your excellent credit will ensure you're eligible for the best discounts across the board.

Negotiate Better Terms on Existing Debts

Having a very good credit score doesn't just help you secure new loans and credit; it also empowers you to negotiate better terms on debts you already have. Lenders and creditors are more willing to work with customers they perceive as reliable and financially stable.

Refinancing Existing Loans

If you have existing loans, such as a car loan or a personal loan, with a higher interest rate, you can leverage your very good credit score to refinance them. By applying for a new loan with a lower interest rate, you can reduce your monthly payments and save money on interest over the remaining term of the loan. This is particularly beneficial if interest rates have fallen since you initially took out the loan.

Negotiating with Credit Card Companies

If you carry a balance on your credit cards, your excellent credit score can be a bargaining chip. You can call your credit card company and request a lower interest rate. While not guaranteed, many companies are willing to negotiate, especially if you have a history of on-time payments and a good credit score. You might also be able to negotiate a waiver of certain fees.

Debt Consolidation Options

With a very good credit score, you can qualify for debt consolidation loans or balance transfer credit cards with favorable terms. A debt consolidation loan allows you to combine multiple debts into a single loan, often with a lower overall interest rate. A balance transfer card can allow you to move high-interest balances to a card with a 0% introductory APR, giving you time to pay down the debt without accumulating interest.

Settling Debts (as a Last Resort)

While not ideal, if you find yourself in a situation where you cannot pay off a debt in full, a very good credit score can still be an advantage, albeit indirectly. Creditors may be more willing to negotiate a settlement for less than the full amount owed if they believe you have the capacity to pay a portion and that it's better than pursuing legal action. However, settling a debt will negatively impact your credit score, so this should be a last resort.

Accelerate Your Wealth-Building Journey

Ultimately, a very good credit score is a tool that can significantly accelerate your journey toward financial independence and wealth building. By leveraging the benefits outlined above, you can save money, increase your purchasing power, and make smarter financial decisions.

The Power of Compounding Savings

Every dollar saved on interest payments or through lower insurance premiums is a dollar that can be reinvested or saved. With a very good credit score, you're effectively reducing your financial "taxes" across various aspects of your life. These savings, when compounded over time, can make a substantial difference in your net worth. For example, saving $100 per month on loan interest alone could amount to $12,000 over ten years, not including any potential investment growth.

Increased Financial Flexibility and Opportunities

A strong credit profile provides you with greater financial flexibility. You're better positioned to handle unexpected expenses, take advantage of investment opportunities as they arise, and make significant purchases like a home or a new vehicle without being penalized by high interest rates. This flexibility is crucial for long-term financial planning and wealth accumulation.

Strategic Use of Credit for Investment

As discussed, a very good credit score can make borrowing cheaper, which can be strategically used to finance investments. Whether it's real estate, a business venture, or even certain types of stock market investments (like margin accounts, used cautiously), lower borrowing costs directly enhance the potential ROI. This strategic use of credit, managed responsibly, is a hallmark of effective wealth building.

Peace of Mind and Reduced Financial Stress

Beyond the tangible financial benefits, having a very good credit score offers significant peace of mind. Knowing you can qualify for favorable loan terms, secure housing, and handle financial emergencies with less stress is invaluable. Reduced financial stress allows for clearer decision-making and a more focused approach to achieving your long-term financial goals.

Maintaining Your Excellent Credit

To continue enjoying these benefits, it's crucial to maintain your very good credit score. This involves:

Continuing to pay all bills on time.
Keeping credit utilization low (ideally below 30%, but lower is better).
Avoiding opening too many new credit accounts in a short period.
Regularly monitoring your credit reports for errors.

Your credit score is a dynamic reflection of your financial behavior, and consistent responsible management will ensure you continue to reap its rewards.

In conclusion, a very good credit score is a powerful financial asset that unlocks a multitude of advantages in 2025. From securing the lowest interest rates on loans and mortgages to accessing premium credit card rewards and even enjoying lower insurance premiums, the benefits are substantial. It streamlines your ability to rent properties, set up utilities without deposits, and negotiate favorable terms on existing debts. By understanding and actively leveraging these opportunities, you can accelerate your wealth-building journey, achieve greater financial flexibility, and enjoy significant peace of mind. Continue to practice responsible credit management to maintain this valuable standing and maximize its ongoing benefits.