A good credit score doesn’t mean you’ll automatically have financial success. While it can help you have more financing opportunities, there are some benefits not even a good credit score can provide.

What Is a Good Credit Score?

Credit scores range from 300 to 850. Lenders have different ideas of a good credit score, but generally, scores between 670 and 739 are considered good.

Scores below 670 fall under the fair or poor credit categories, and those above 739 are considered very good to excellent credit scores.

A Good Credit Score Doesn’t Guarantee These Benefits

A good credit score can provide access to more financing opportunities than bad credit, but it doesn’t always guarantee certain benefits, including the following:

Loan Approval

Lending criteria vary by lender and loan program. While a good credit score may make it easier to borrow money, it’s not a guarantee. Lenders look at other factors when determining if you qualify for a loan.

For example, you could have great credit scores but have more debts than your monthly income can cover, making qualifying more challenging.

Guaranteed Rental Approval

Landlords look at more than your credit report. Your credit score is a factor, but they also consider things like your income, rental history, employment, and what your references say.

You could have the best credit score possible, but landlords may only approve your rental request if you have stable income or employment.

Low Interest Rates

Interest rates are based on many factors.

Lenders can only offer the rates the market allows, so even if you have a good credit score, lenders can only offer the lowest market rate at that time. Good overall financial health helps you qualify for lower rates, but the market dictates the available rates.

Low Insurance Premiums

Auto insurance companies often check a consumer’s insurance score, which includes checking their credit, to determine their likelihood of filing a claim.

Insurance companies look at how a person manages their money. They want to know if you have good credit habits. Those with a bad payment history, collections, or bankruptcies are often at higher risk and get higher insurance premiums.

However, a good credit score doesn’t automatically mean you’ll get great insurance premiums. Your credit history is one piece of the puzzle.

Insurance companies also look at factors like driving habits, the type of car driven, and the number of miles driven to determine your premiums.

Guaranteed Good Financial Health

Higher credit scores indicate good money management, but you may have poor financial health in other areas.

For example, you may be the type that doesn’t use credit cards, so you don’t have any credit card balances or a high credit utilization rate, but you may have a low income and live paycheck to paycheck.

A high credit score may signify that you’re good at managing debt, but it doesn’t signify that you’re wealthy or even have an emergency fund saved. Credit reports only look at your debts, not how much money you have in the bank or invested.

What Is Not a Benefit of Having a Good Credit Score?

Reasons More Than Your Credit Score Matters

When applying for new loans, more than your credit score matters. While most lenders check your credit report first, there are other factors besides this.

They’ll consider your credit scores to see if you fall within the loan parameters to determine if they should move forward, but they consider many other factors, including the following:

1. Lenders Require Adequate Income To Secure Loans

You could have the best credit score, but that doesn’t mean you have enough income to cover the loan payment you applied for. Lenders must ensure you have consistent income and can cover your existing debts, plus the new loan payments.

The type of loan you apply for determines the type of income the lender may allow.

For example, mortgage lenders typically only allow employment or self-employment income. Title loan lenders, on the other hand, may be able to accept non-traditional forms of income, such as unemployment, worker’s compensation, investment income, or disability.

2. You May Have a Lot of Debt Even With a Good Credit Score

Even if you have a great credit score, you may have a lot of debt. A high credit score means you have a solid payment history of making timely payments, but if you have a lot of debt, you may not have enough income to cover more.

Lenders consider your debt-to-income ratio, which looks at your monthly debts compared to your monthly income before taxes. Each loan program has a threshold for the DTI.

So, even if you have a high credit score but also a high debt-to-income ratio, you may not qualify for the loan, or at least not as much as you wanted to borrow.

3. Good Credit Scores Don’t Factor in Your Bank Account

Credit scores focus strictly on debts you carry or have carried, such as credit card balances, personal loans, mortgages, or auto loans.

They don’t look at your bank account balance or even your checking account history to see if you’ve bounced checks before.

Lending criteria typically require that lenders evaluate your bank account, including its average balance, income received consistently, and whether your bank account history signifies you can afford the loan.

4. Good Credit Scores Can Make You a Victim of Identity Theft

Some thieves and hackers target people with good credit scores because they’ll be able to do more with it if they successfully steal it.

While this shouldn’t be a reason to avoid having good credit, be mindful of your privacy. Never share passwords to financial accounts, change passwords often, and only access secure financial information when on a secure network.

What Is Not a Benefit of Having a Good Credit Score?

How Title Loans Can Help Even With Good Credit Scores

Even with good credit, title loans may help you in a financial emergency. Title loans offer funding quickly, usually within 24 hours or less of applying, and they don’t require extensive documentation like other loans might.

How Title Loans Work

Title loans exchange funds for your car title and don’t affect your credit score. When you qualify for a title loan, you receive the funds within one business day, or sometimes the same day if you apply and are approved before 1 PM local time. You give up possession of your title while you make monthly payments.

You continue to drive the car while carrying the loan. When you pay the loan in full, you receive the title back and can do what you want with the vehicle.

Title loans are usually for lower loan amounts of $500+, and you can usually borrow 25% to 50% of your vehicle’s value. For example, if your car is worth $15,000 and you don’t have any loans, you may be eligible to borrow $3,750 to $7,500.

How To Qualify for Title Loans

Title loan lenders have more relaxed guidelines than traditional lenders. They don’t require good credit scores but will look at your credit report to understand your financial health. In addition, they look for:

  • Stable income, which doesn’t have to be from employment
  • Ownership of the vehicle with your name on the title
  • Proof of valid driver’s license and insurance
  • Proof you don’t have any liens on the vehicle
  • Pictures of the vehicle to prove its value


What Is Not a Good Credit Score?

Credit scores vary widely, but typically, any credit score below 670 is not considered good, and any score below 579 is considered poor.

What Does Not Contribute to Your Credit Score?

Your bank account balances, race, religion, color, sex, marital status, medical information, criminal records, or education do not affect your credit score.

What Are the Benefits of Good Credit Scores?

  • Increase your chance of securing loans: If you meet the other loan requirements, you may qualify for loans
  • Secure better interest rates: Many lenders save the best interest rates for borrowers with great credit scores
  • Secure more attractive terms: Other services, like insurance and utilities may offer better terms with high credit scores

What Is a Disadvantage of Having a Bad Credit Score?

Qualifying for financing with bad credit can be challenging, especially in an emergency. If you qualify, you’ll typically get much higher interest rates and less favorable terms than someone with good credit.

Final Thoughts: Good Credit Scores Aren’t Always the Answer

While a good credit score can offer more financing options compared to bad credit, it doesn’t necessarily ensure specific advantages.

When you need money, good credit scores aren’t always the answer. The key is a well-rounded application with a solid employment history, consistent income, and manageable debts.

If you need money fast and don’t qualify for traditional financing despite your good credit score, consider applying for a title loan for fast financing with fewer qualifying requirements.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.