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Your credit score is, low key, one of the most powerful numbers in your life.
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Hit 750 or higher, and you could unlock savings worth $1,000 or more a year. Plus you get access to better loan rates, credit card rewards, and perks you might not even know about.
Here’s how FICO® Scores break down:
- 300–579: Poor
- 580–669: Fair
- 670–739: Good
- 740–799: Very Good
- 800–850: Excellent
If you’re pushing your score past 750, you’re entering the “very good” to “excellent” zone — and that’s when these perks start stacking up.
1. Save big bucks on car insurance
Weird but true: Your credit score helps decide how much you pay for car insurance.
Most states (except a few like California, Hawaii, and Massachusetts) let insurance companies pull your credit profile before quoting your rates.
Here’s the average cost of car insurance for people in different credit score brackets:
| Credit Score Range | Average Annual Car Insurance Cost |
|---|---|
| Poor credit | $4,731 |
| Average credit | $2,943 |
| Good credit | $2,692 |
| Excellent credit | $2,308 |
This is why it’s really important to shop around for insurance every couple years — especially if you’re slowly building your credit score up.
2. You’ll pay smaller security deposits
Moving soon? Your credit score might decide how much cash you fork over.
Landlords almost always run credit checks. And a solid credit score could mean:
- Lower security deposits (sometimes hundreds of dollars lower).
- Stand out against other applicants in competitive markets.
- No need to find a cosigner with a better credit score.
In some cases, it could mean a bit of negotiation power for a cheaper rental rate.
Forget basic 1% cash back cards. When your credit score levels up, so do your options.
With good to excellent credit (at least 670, but 740 or higher for the top-shelf stuff), you can unlock credit cards that bring the heat:
- 2% or more cash back on spending.
- Airport lounge access (goodbye, $19 sandwiches at the gate).
- Travel credits, free checked bags, even luxury hotel perks.
Some of these premium cards have sign-up bonuses that can be worth over $1,000 in travel rewards if you meet their spending requirements. Not bad if you were planning to spend that money anyway!
If you’re already rocking a FICO® Score of 670 or higher, check out these top travel credit cards for May 2025.
Good habits to boost your credit score
When I moved to the U.S. at age 22, I had to start from scratch — no credit cards, no loans, no credit profile at all. It took me nine years of smart habits (and a lot of patience) to finally break the 750 mark.
Trust me, building good credit doesn’t happen overnight. Just focus on these:
- Always pay bills on time. Payment history is the biggest slice of your score. Even one late payment can do major damage to your score.
- Keep your credit usage low. Ideally, use less than 30% of your total available credit — lower is even better.
- Don’t open a bunch of new accounts at once. Every hard inquiry can ding your score temporarily.
- Check your credit reports for mistakes. You can grab free copies at AnnualCreditReport.com.
Even a small bump — say 20 or 50 points — can unlock cheaper insurance, better rewards, and easier approvals. Every step forward is worth it.
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