The Beauty of Good Personal Credit-worthiness in Business
A decent personal creditworthiness is a vital feature in every business.A credit score is a number that reflects on the creditworthiness of a person. In a range of 300 – 850, anything above 700 is considered to be a great score. It is wise to note that money lenders will be willing to lend money to you only if you have a decent credit score. It is important to note that your score can reduce or inflate the lending interest rates.For these reasons, it is always advisable to have and to maintain a good score.This will be achieved by always ensuring that every money borrowed is repaid in time without default.At the same time, make sure that your credit cards are used wisely and avoid 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. The motive here for them is to know whether you meet your deadlines when it comes to payment of bills.At the same time they will check whether you are a big spender compared to your earnings. 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.
Again, if you want to buy a house a good credit score will be very helpful. It is important because buying a house is a long term investment which attracts high-interest rates. On the other hand, someone may lose their house or become insolvent if a mortgage is not managed well.At the same time, when you are looking for an apartment for renting, a good credit score will help you qualify. It is important because landlords will check your credit history before allowing you into their houses.
For anyone wishing to purchase a car but has no enough cash, it will be easy to get a loan when you have a good credit score. Every business owner who deals with long term lending will always rely on your score to give you their credit facilities. 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.This means that you will get these services immediately when you apply for them.
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