A good credit score plays a vital role in your ability to survive in our credit dominated society. A good score is when you are considered a prime borrower, when your score is above 680. With a good score, a lot of people – your lenders, your insurance provider, your landlord, etc – will look on you as a limited credit risk . The advantage of having a good credit score is not just limited to your mark, it affects matters which on face value seem to be unrelated to it. It is also an important factor to how you are perceived when it comes to financial matters, practical sense, and responsibility in behavior. Here are a few of the advantages of having a good credit score.
You may have different needs. You may need to own a car, rent a befitting apartment, pay for insurance, etc. You must however have the credit to satisfy these diverse needs as well as to strike a favorable interest rate deal with the lender. With a good credit score, you will find lenders willing to extend credit to you because your credit score denotes that you will pay your credit as promptly as possible. Apart from that, you will be in position to negotiate the best interest rate possible on the strength of your good credit score.
A good score becomes important at the point of renting an apartment. You might question how it is calculated? Easy. The landlord is very interested in getting paid the rent price fixed on his property. To achieve this objective, he must give out the apartment to the tenant that has the capacity to pay for it. The only means to judge the capacity of the tenant is to look at the payment history of the tenant and the other lines in the credit file. With a good score, a message has been sent that the tenant has a good payment history, does not owe much on his accounts, and has little new credit inquiries.
It can also enhance your chance of getting a new employment. Many employers are of the belief that the manner with which a worker builds a credit score can be translated to the workplace. It also portrays you as being level headed, practical, capable of handling financial matters, and unlikely to be distracted from work by financial pressures. On the other hand, a bad credit score makes a potential employer to see you in an unfavorable light.
A lot of service providers are in business because those who use their service pay for them on time. With a good score, your cell phone provider is likely to extend service to you on the strength of your good score. You will be perceived as a customer who has the capacity to make payment in a responsible manner. The electricity provider will give service when you have a good credit score. Other service providers will assess you in the same light.