Reasons Why You Must Maintain A Good Credit Score
Many loan apps or websites are careful about how they lend money. They are usually very thorough and if you are one with a low credit score, ie., you have borrowed from others and defaulted a couple of times before paying, they would not grant you your loan. It is what they call a credit score. Your credit score is a prediction of your credit behaviour such as how likely you are to repay a loan on time, based on information from your credit reports. And if you have a low credit score you may not be able to borrow from some of them, which is why you can Get a Loan Even With Poor Credit With Money-Wise.
We would be discussing in this article why you need to have a good credit score.
Reasons you should have a good credit score
Having a good credit score would give you access to loans that are favourable to you. You may have heard of the term “good credit” before, and there is a reason that it is used.
Although your credit range depends on who is judging it and where the score is coming from.
- It gives you better rates o your car insurance. The insurance company may use your credit score to determine all kinds of decisions they would make when you apply for coverage.
- It saves you on the other types of insurance. Some other insurance types may also look at your credit score. This is because these insurance companies would also look at your history with other lenders and how much debt you owe.
- It qualifies you lower credit card interest. When you apply for a credit card, there is the likelihood that they may check your score and when approved, they may grant you a lower annual percentage rate. It will also help you when you want to apply for an upgrade or a new card.
- Gives you housing options. Where you live can also affect your quality of life. Good credit would help you in this aspect, as some landlords may seven check your credit history.
- Your utility service would be more easily gotten. When you set up accounts for utilities like electricity or internet, your credit score may also affect them.
Your credit score may also affect you when trying to look for potential employers, some may check your credit score before giving you jobs. They may see late payments and bankruptcies as a red flags. This is why it is suggested that you check your credit score before you start looking for jobs.