3 Easy Ways to Take Advantage of a High Credit Score

A high credit score is an impressive achievement. It's a sign you've managed credit well, probably for several years. It also benefits you financially. You'll be eligible for top credit cards with valuable perks, and in most states, your credit could even save you money on car insurance.

When you've worked hard to build a high credit score, it's worth taking advantage. Keep reading for a few easy ways you can do that.

1. Open a rewards card for cash back or travel points

You probably have plenty of bills and everyday expenses you could pay with a credit card. If you use a rewards credit card, you could earn cash back or travel points on that spending. Over time, it's possible to save a sizable amount of money this way.

For example, there are cash back cards that earn a flat rate of 2% on purchases. Let's say you spend $30,000 on your credit card each year ($2,500 per month). You'd earn $600, just by paying with a 2% back card.

Travel credit cards are another option. These are a bit more complicated than cash back cards, but they're perfect for frequent travelers. I save thousands of dollars on travel costs every year thanks to my travel cards.

There is an important rule to follow when using rewards cards: Always pay your card's full statement balance. This is a good habit in general, because if you don't pay in full, the card issuer can charge you interest. Interest charges will likely cost you more than the rewards you earn from your card.

2. Get a 0% intro APR card for interest-free financing

Sometimes, life hits you with big expenses you can't quite pay all at once. Maybe you've recently closed on a home purchase, and now you're paying for moving costs, new furniture, and appliances.

Whatever the situation, there's a way to pay off expenses over time interest free. With a high credit score, you'll likely be able to qualify for a 0% intro APR credit card. As the name suggests, this type of card doesn't charge any interest on purchases for an introductory period.

Some of the best 0% APR credit cards have introductory periods of 15 months or longer. There are just a couple of things to remember with these cards:

• You're still required to make minimum payments, even during the introductory period. If you don't, your card issuer could cancel the 0% intro APR.
• The APR will increase quite a bit after the introductory period ends. Do your best to pay off your balance before that happens so you don't need to pay any interest charges.

3. Refinance debt at a lower interest rate

Your credit score is a rating of how much risk you present when borrowing money. As a general rule, the higher your score, the lower your interest rates will be on loans.

If you're paying back any loans you got while your credit score was lower, you may be able to qualify for a better rate now. By refinancing your loan, you could pay less interest overall and possibly get a cheaper monthly payment, as well.

You can refinance most types of debt, including mortgages, auto loans, and personal loans. Interest rates have gone up quite a bit overall since 2021, so refinancing isn't always a good idea. But if your credit score has gone up, and you have a loan with a high interest rate, explore refinancing options to see if a better deal is available.

At a minimum, anyone with a high credit score can use a cash back card or a travel card to save money. If you need to pay off expenses over time, you could do that with a 0% intro APR card. And if you have any old loans costing you money from expensive interest charges, you could leverage your credit score to refinance at a lower cost.