Benefits of Maintaining a Good Credit Policy
In business, most people always strive to maintain a good personal credit score. 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.This means that, if you have a good personal credit score, financial institutions will be willing to lend you any finances that you may require.In addition to that, your interest rate will be determined by your personal credit score. Subsequently, always ensure that you retain a good personal credit score. The secret to doing this is by ensuring that there are no defaults in repaying all your loans. It is also your duty to ensure that credit cards are used properly without incurring overdrafts. Here are the main benefits of maintaining a decent personal credit score.
Obtaining a credit card from a financial institution becomes very easy for someone who has a good personal credit score.This is because the institutions will always check your credit history before they issue you with a card. They will want to establish whether your pay your bills on time. 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.
Always remember that to qualify for a mortgage, you need to be credible pertaining to your borrowing. 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. The reason behind this is that house owners will be interested in knowing your credibility.
Additionally, you will be able to access a credit facility to finance the purchase of your car, if you are credit worthy. 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.
Additionally, most of the companies that deal with utility accounts will not ask for deposits for electricity connections or telephone lines. These services will be available straight away after application.