5 Things a Higher Credit Score Can Do for You in 2021

A senior couple high-fiving.

Image source: Getty Images

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

A stronger credit score won't just give you bragging rights. It'll also pave the way to these perks.

You may not put much thought into your credit score on a regular basis. But actually, a strong credit score could open the door to a host of opportunities. Here are a few things a higher credit score might do for you in the coming year.

1. Land you a competitive mortgage rate

Looking to buy a home? A high enough credit score could be your ticket to a low mortgage rate, which could, in turn, result in many years of savings. Though mortgage rates are currently sitting at record lows, you generally won't get the best deals unless you have a credit score in the mid-700s or above.

2. Give you a great mortgage refinance rate

Even if you're seeking to refinance your mortgage with your current lender, you'll still need good credit to qualify for a much lower interest rate than what you're currently paying. And also, the better your credit score, the easier a time you'll have shopping around with different lenders for a great deal.

3. Snag you a personal loan

These are challenging economic times, and you may find that you need to borrow money in the course of the year. The better your credit, the easier it'll be to qualify for a personal loan with an affordable interest rate attached to it. With a personal loan, you can borrow money for any reason, so it's a great option when you need flexibility.

4. Get you approved for great credit card offers

Those credit card offers you keep seeing with awesome cash back programs and sign-up bonuses? They're generally reserved for borrowers with strong credit. If you want to benefit from one of these top offers, you'll need a top score.

5. Allow you to rent the home you want

Though 2021 may be a tricky time to move seeing as how we're still dealing with a pandemic, if you're ready to take that plunge, a higher credit score will increase your chances of getting a rental application approved. That could let you move to a neighborhood with better amenities or get more square footage -- an important thing at a time when so many people are stuck at home and doing their jobs remotely.

How to boost your credit in 2021

If you're eager to see your credit score rise this year, there are a few things you can do to make that happen:

  • Pay all incoming bills on time
  • Pay off some existing credit card debt
  • Check your credit reports for errors and correct mistakes immediately (you can get a free copy every week through April)
  • Request a spending limit increase on your existing credit cards (but don't rack up charges against it)
  • Ask to be added as an authorized user on a family member's long-term credit card account in good standing (an especially good strategy if you're fairly young and don't have a lengthy credit history)

A higher credit score buys you more financial freedom, so if yours could use work, make that effort this year. It could pay off in more ways than one.

Alert: highest cash back card we've seen now has 0% intro APR until 2024

If you're using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. 

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. 

Read our free review

Our Research Expert