3 Little-Known Perks of Having a High Credit Score

The highest credit score you can get is an 850. But the reality is that most people don't have perfect credit, and there's a reason for it.

Any time you apply for a new loan or credit card, a hard inquiry is done on your credit report, which can result in a very small hit to your score. So even if you've paid every single bill of yours on time in the past five years and maintain a $0 credit card balance, if you applied for a loan two months ago, chances are, you won't have perfect credit.

However, Experian, one of the three credit bureaus, reports that a credit score of 740 to 799 is considered very good, while a score of 800 to 850 is considered exceptional. So once your score reaches 800, there's a good chance you'll not only have a relatively easy time qualifying for a loan or credit card when you want one, but also, snagging a competitive interest rate in the process.

But that's not the only benefit to having a high credit score. Here are three perks you might also enjoy.

1. You may have an easier time renting a home

It's common for landlords to perform a credit check on prospective tenants before letting them sign a lease. If you're looking for an apartment in a city with few rentals, your high credit score might give you an edge. A landlord might prefer to rent to you than someone whose credit isn't as great.

You can also use a higher credit score as a negotiating tool for lower rent. Let's say you've been in your rental for a couple of years and your landlord wants to impose an increase. You could point to your stellar credit as a reason they'd want to keep you around as a tenant -- and potentially avoid having to pay more.

2. You might save money on your car insurance

There are different factors that determine what premium rates you're quoted when you shop around for auto insurance. These include your driving history, location, and vehicle type and age.

But another factor that auto insurers tend to take into account is credit. You'd think that wouldn't be part of the mix, since your tendency to pay bills on time doesn't necessarily correlate with the way you handle a vehicle on the road. But still, it's often a factor unless you live in a state that bans the practice.

3. You might have an easier time getting a job

Some employers conduct a credit check as part of the process of vetting employees. This is especially likely to happen if you're applying for a job that requires you to handle or manage money.

One thing you should know is that in the course of this type of credit check, a prospective employer generally will not get to see your actual credit score. However, they'll see components of your credit report that include your payment history. And a strong payment history is indicative of a high credit score.

It pays to boost your credit score

A strong credit score could do a lot of good things for you. If you feel that your credit score needs work, you can boost it by:

• Paying bills on time
• Keeping your credit card balances to a minimum
• Not applying for new loans or credit card accounts for a period of time
• Keeping long-standing credit card accounts open
• Checking your credit report for errors

It may take some time for these moves to have an impact on your credit. But once they do, you can put yourself in a position to benefit in more ways than one.