Benefits of Maintaining a Good Credit Policy
Most people in business always want to be creditworthy for smooth business operations. When a business person is able to pay his bills on time without default, he is said to have a good credit score.A good score is usually 700 and above from a range of 300 – 850. 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. The secret to doing this is by ensuring that there are no defaults in repaying all your loans. 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.
Obtaining a credit card from a financial institution becomes very easy for someone who has a good personal credit score. It is an important aspect because the credit score is the primary source of information on your creditworth, before obtaining a credit card. The motive here for them is to know whether you meet your deadlines when it comes to payment of bills. Subsequently, they will compare your earnings with your manner of spending to try and establish whether you a big spender. It is important to note that, if you have loans that you are servicing currently, you may not qualify for another one before repaying the existing one.
On the other hand, a good score will be very useful when you want to buy a house. It is important because buying a house is a long term investment which attracts 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. In most cases, even when looking for a rental apartment, a good credit score will come into play. 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. Always remember that you will not be able to access credit from any credit facility if you have a bad credit score. In addition to that, a lower interest rate can be discussed always as long as you have an excellent personal credit score.
In most cases, utility accounts like electricity and telephone lines that demand for deposits before accessing the service will exempt you from those deposits. These services will be available straight away after application.