The Value of Maintaining a Good Credit Score

CreditPerhaps you want to apply for a loan or just get a mortgage but you are in doubt since you know that your credit score is not good enough. Thus you are aware how a good credit score can affect your financial status as an individual. Most people are having a hard time maintaining this, and so they are also struggling to survive in an era where a credit score is almost as good as the stability of your bank account.

Why should a person maintain a good or higher credit score? Well for one, you can be allowed to higher credit limit. Since a creditor or a bank already knows that you are capable of taking care of your financial responsibilities, they are more than willing to give you a higher credit limit that you can use to your won advantage.

It is also a possibility that you are charged with lower interest rates on your credit cards and even when you are applying for a loan. Whether you are getting an auto loan or any other kinds of loan, you are more likely to get approved easily and faster, too. Most creditors do not conduct much observation on your application since they know that you are not a delinquent when it comes to your payments.

Another benefit is also a better chance of getting employed. Although not all employers perform credit background check, some may still do as a part of their screening process. Of course, an applicant who has a good credit score may appear more responsible and reliable as a person and as an employee. They would rather hire someone with average skills and higher credit score than someone who has good skills but very poor credit rating.

If you are a business owner, a good credit score may be everything you will need to start on your own. Many creditors, banks and credit unions will gladly lend you the starting capital that you need for your business. You can even ask them to lend you a higher amount once you can prove them that you have established a high credit rating. But more importantly, seek advice of Your Personal Financial Mentor before jumping into any conclusion because being an expert in his field; he can devise an effective financial strategy for you to take a reasonable decision.

Money may not be everything, but in the business world, money speaks. And how you handle your finances and responsibilities will definitely reflect your credit score. So it is important to always be careful and maintain a good credit rating to ensure that your position in the corporate world, or even as an average individual will not suffer. Just think of the many advantages it can bring if your credit score is good. It will speak of who you are and how responsible you are in terms of money and obligations.


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November 9, 2013 The Value of Maintaining a Good Credit Score