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Having a high credit score isn’t just about bragging rights or the obvious ways it can save you money.

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Sure, most of us know a strong credit score comes with perks such as lower borrowing rates. It can also increase your approval odds for fantastic credit cards like these that sport up to $750 in bonuses or allow you to pay no interest for up to 21 months.

But there are also some less obvious perks that can make a high credit score impactful. Before we dive into some of the hidden perks, here’s a quick look at how credit scores are typically ranked:

• Excellent credit: 800 to 850
• Very good credit: 740 to 799
• Good credit: 670 to 739
• Fair credit: 580 to 669
• Poor credit: 300 to 579

If you’ve been working hard to boost your score — or you’re already basking in the glory of a good one, here are some of the unexpected ways a high credit score can make your life easier (and cheaper).

1. Insurance premiums could be $1,070 lower per year

It’s common for auto, life, and homeowners insurance companies to use credit scores to set premiums (except states like California, Massachusetts, and Hawaii where it is illegal). That means having a high credit score could save you serious cash on insurance costs.

How much can this add up to? According to Motley Fool Money research on how credit scores impact auto insurance premiums, drivers with excellent credit history paid $1,947 for auto insurance in 2023, $1,070 below the national average auto insurance payment.

If you have good to excellent credit, check out our list of the best car insurance for good credit to see which carriers you could save the most with.

2. It could be easier to get a job

While employers cannot see your credit score specifically, they can ask to see credit report information which has a direct impact on your credit score. Employers might want to look at whether you have a high amount of debt, whether you have mismanaged your finances over the years, or they might just want to use a credit report to help verify your identity.

It’s important to remember that employers are required to get your written permission before running a credit check, and they must tell you if your credit report impacted their hiring decision.

3. Better negotiating power with financial institutions

Having a high credit score makes you a desirable customer for financial institutions, and that can give you leverage to ask for better deals. As with a lot of things in life, the key is often just asking.

For example, I’ve found that many people are surprised at how often they are able to convince their credit card company to waive their annual fee or lower their interest rate simply by making the request. Similarly, your bank may agree to waive certain fees to keep your business.

It’s in their best interest to keep you as a customer, and you’re highly valuable to them if you have a strong credit score. Next time you want something from your financial institution, consider just asking directly. There’s a good chance your high credit score will pay off.

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