The best part about having a good credit score is an entire world of financial options opens up to you. With a good credit score you have a verity of options to secure funds for a verity of reasons. More channels are open to you to borrow from and at much better interest rates. What can be hard is to determine what types of loans to obtain when you need money to accomplish your goals, that will not overly effect that credit score that you worked so hard to earn. Your higher credit score means you can afford to be choosey on what type of loan you go for as well as potentially higher limits. If you need financing here are some suggestions on financing sources to seek out and utilize.
If you own your own home this is one of the best ways to obtain the money you need. You can simply cash out on the equity in your home by refinancing your home to take cash out. It is basically cashing out on the equity you put into your home. The reason this is one of the best financing options is that you can use the money for whatever reason you want. The interest rares on a refinance are much lower than any other type of loan product you will find. You do need to consider if the reason you are borrowing the money in the first place is worth the loss of the equity you have put into your home.
Home Equity Line of Credit
If the idea of losing your equity in your home does not appeal to you, there is more than one way to make use of your number one asset. a home line of credit or HELOC might be the option you are looking for. It uses the value of your home to determine your credit line limit. Your home then has a lein put on it, just like a mortgage to secure the loan amount. Unlike a loan however you have a credit limit you can tap into when needed. You can use the funds however you wish and the interest rates are better than many other loan products on the market. The danger here is that your home is the collateral for this credit line, so you must be careful not to default on your loan.
Due to having a good credit score you can obtain a personal loans secured with nothing more than your signature. Personal loans are installment loans and will usually have a fixed payment per month. Because of your good credit you will not need to secure the loan with collateral, you need nothing more than your signature and promise to pay back the loan in full and on time. Interest rates on a personal loan will be much better than using a credit card and it will effect your credit score less than tapping out all of your plastic would.
Peer to Peer Lending:
This rather new form of lending allows you to obtain a loan from a network of personal investors. It used to be that with peer to peer lending people with lower credit scores could obtain a loan, but now major peer to peer lending networks such as Prosper only end to those with good credit scores. Simply sign up to any peer to peer lending network such as Lending Club or Prosper and fill out a loan request. Lenders will then have the opportunity to review the specifics of your loan and credit score and determine if they are willing to fund your loan. The interest rates for those with excellent credit are usually lower than what a bank or credit union will offer you. These types of loans are signature loans so no need to secure them with collateral.
These should only be used as funding if you can pay the balance of in 30 days. Credit cards are revolving credit and this is one of the most costly forms of credit out there. You avoid creating high balances, if you need a large sum of money I recommend using another loan product.