A good credit score reflects your strong financial situation and also the repayment capabilities. It will not be a problem for you to survive with bad credit score but it may end in big difficulties in future. You will be ending up paying high monthly repayment amount. Having good credit score has many benefits than you think. Even it will increase your social status. If you are having bad credit score, it is good to learn how to fix your credit score. You can also refer some good financial information at http://www.moneycontrol.com to know more about the benefits of a good credit score. The following guide will explain you in details about the benefits of having a good credit score.
Reduced interest rates
One of the major benefits of having good credit score is that you will get loan with reduced interest rate. The rate of interest will be decided by your financial lending company. If you are having good credit score then your repayment strength will be good and hence the lending companies will provide your loans with less interest rate. Most importantly, they will prefer to provide loan for you and hence you will have the right to ask them to provide the loan with reduced interest rate.
New Credit Card
If you want to have a better control on your new business expenses, then it is a good option to go a new credit card. You can use this new card only for the business transactions so that you can easily track all your financial transactions. If you maintain a good credit score then all financial institutions will be ready to offer you a new credit card with many offers.
If you are having good credit score then all financial lending companies will be behind you to offer loans and new credits cards. Now, it is your turn to check and select the best lending company who provides better offers than other lending companies.
The increased loan limit amount is the next major benefits of maintaining a good credit score. If your credit score and income is on the higher side then you are eligible for getting high loan amount with reduced interest rate. The increased loan amount will be helpful for those who wanted to start their own business.
If you are having bad credit score it will not only affect your home loan eligibility but also the rental home chances. Many house owners check your credit score before letting their house for rent so that there won’t be any problem in receiving the monthly rent.
Many people are not aware that even bad credit will affect their insurance premium amount. When you are approaching the insurance companies for renewing your insurance premium, the insurance companies will check your credit score before providing you a quote. If your credit score is less then they will increase your insurance premium amount and vice versa.
Even mobile service providers will not sanction you postpaid services if your credit score is less and hence you have to go for the prepaid option.