1. Benefits of good Credit Score
You might have underestimated the power of having a good credit score. But the reason for
you to do so might be because you don’t know or just haven’t realized the real advantages of
having a good score. First of all, your score reflects who you are and what you do. It would
tell creditors, lenders or banks if you pay your bills on time or not. It shows if you are
responsible with your money and if you really know how to handle it. A good credit score can
actually save you time, effort, and money. Sometimes it can even save your life. That might
be a little too exaggerated but for some, it isn’t. It’s because a lot of people rely on their
credit for their homes, their cars or their jobs.
Low interest rates- this is actually the best thing you can benefit from with an excellent credit
score. If you are applying for a loan or if you are buying something, a score above 650 or
higher will get you an interest rate of 2.5% and below. You’ll be saving hundreds or even
thousands of dollars with that compared to spending that amount on something with an
interest rate of 5% and above. See the difference? With a healthy score, they will think that
you will be able to pay them on time and regularly, and that you wouldn’t be a problem for
them. In short, you are not a risk. On the other hand, a low score will get you rejected, or you
may get it but with a very high interest rate or with a high deposit balance.
Less effort- It’s because when you have a good one, you won’t have to go looking for a lot of
lenders or dealers. They will most probably give you the best deals in the market. They’ll be
interested in sharing you their product or whatever it may be. But a poor score will trouble
you because you’ll have to look for a lender or dealer who will be willing to work with you
despite your low qualification for their standards. You’ll be the one doing the chase, also if
you get rejected it’ll be seen on your record then you’ll have to boost it up again just to make
your credit report look better.
Manage your time wisely- A good credit score can easily get you loans. Well, it actually
depends on the one you’ve applied for but chances are, you are still going to get it faster
than a bad score. Save your time and don’t let your wait any longer.
A healthy credit score will go a long way. Keep it up and pay your bills on time, boost it and
fix the errors. Be responsible and watch it make your life easier.