Advantages of a Good Personal Credit Score
A decent personal creditworthiness is a vital feature in every business. When a business person is able to pay his bills on time without default, he is said to have a good credit score. In a range of 300 – 850, anything above 700 is considered to be a great score. It is wise to note that money lenders will be willing to lend money to you only if you have a decent credit score.In addition to that, your interest rate will be determined by your personal credit score.For these reasons, it is always advisable to have and to maintain a good score. For this reason, it is always important to pay all your bills in time without fail. Subsequently, use credit cards wisely without spending more than what is in the bank account.The following are the advantages of a good personal credit score.
Financial credibility will be of help to you when you need to obtain for a credit card from a financial institution. The reason behind this is that credit facilities check your credit history before issuing you with the credit card. The reason behind this, for them, is to know if you are a defaulter in paying your bills. Additionally, the lenders will match your earnings with your level of spending to see if you manage your money wisely.If you have existing loans that you haven’t paid, then you may not qualify for a loan.
On the other hand, a good score will be very useful when you want to buy a house.This is because a mortgage is a long-term engagement and it has high-interest rates. It is wise to note that a mortgage demands proper administration and if the contrary happens, someone may lose their home and become penniless.At the same time, when you are looking for an apartment for renting, a good credit score will help you qualify. It is important because landlords will check your credit history before allowing you into their houses.
For anyone wishing to purchase a car but has no enough cash, it will be easy to get a loan when you have a good credit score. It is wise to note that most of the business people will only give credit to credit worthy people based on their credit score.Subsequently, you will be able to negotiate a lower rate of interest which could save you a lot of money.
Additionally, most of the companies that deal with utility accounts will not ask for deposits for electricity connections or telephone lines.This means that you will get these services immediately when you apply for them.