Using credit wisely helps you in establishing a good credit history. Good credit history denotes an individual as a responsible and trustworthy person.
Having good credit history means having good credit score as well. Your credit score is one of the important factors in the approval of any line of credit.
There are various advantages of having a good credit score.
Good Credit Score makes it easier in:
Buying a Home: When one applies for a home loan, banks and financial institutions check your credit report and credit score. If you have a decent income, you will get the loan. But the main advantage of having a good credit score lies in the interest you will get. With a credit score of more than 750, you can get a very competitive rate. Just one or two percentage points in interest can save you tens of thousands of rupees over the life of the loan.
Getting a Job: Nowadays employers take into account your credit score while deciding to hire you. Candidates with good credit score tend to be more responsible and trustworthy. This is what quantity employers want. So, having a good credit score can really help you get a better job.
Financing a Car: When you apply for an auto loan, whether it’s through a bank or a dealer, the lenders will check your credit report and credit score. Based on your credit report and credit score, you can negotiate for a lower interest rate. Even one or two percentage points on an auto loan can mean a difference of thousand of rupees.
Borrowing Credit: Lenders look at your credit report and credit score before they decide to lend you money. If you have a good credit score, you are more likely to not only to get the loan you need, but also to get a better (lower) interest rate and terms.
Having phone or home utility accounts: With good credit score, others companies such as telephones, insurances, etc. are likely to provide services to you right away. If your credit score is bad, you could find yourself in trouble getting a telephone line or even getting an insurance policy.
Obtaining Credit Card: Credit card companies determine whether you qualify for the card you want by looking into your credit history. Having good credit score will enable you to have a credit card with a lower interest rate and more benefits – such as rewards, cash back and cash advances.
Credit Sudhaar is India’s first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.