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10 Benefits of Having a Good Credit Score

by Melanie Peterson
You cannot avoid the King, as he is the decisive factor to attract every result. Not much different from a king is your credit score. Just a glance at it by the finance companies is sufficient to give an instant and final decision on your application. Credit cards, loans, insurance, buying things on instalments etc. cannot be approved without taking a look at your credit rating. Of course, this means that it is necessary to have an idol credit score performance.

Not some, but there are 10 major benefits of having a good credit score. Have a look at them – 

1. A Lot of financial opportunities to explore and exploit 
When you have a great credit rating, the whole finance industry gets eager and offers you its best deals. Banks want to offer you a home loan, and private lenders have something great to serve on all the types of loan products. Credit card companies, investment options etc. are restless to get your ‘YES’ on the latest offers. In simple words, having a desirable rating brings many options to you, and that is luxury. Like a bad credit score person, you do not need to worry about funds during an emergency.

2. Easy to get a house on rent
Yes, as you know, the landlords check the credit score of the prospective tenant before they rent out their property. With an excellent condition in finances, get a shelter on rent easily without any questions. It is not easy for us to buy a home. This big decision takes years and a huge investment, by that time, one needs a shelter. You agree on that, right? With a low score, you may need to compromise and take the house in an area that is not in good connectivity with the city or basic facilities.

3. Better mortgage deals
When finally you attain the situation and buy a home, the mortgage is one of the most important needs. The payment record is an important factor, and that reflects from the rating that the credit reference agency assigns to you. It is understood, and you want to know more what is a good credit score for a mortgage in the UK? Of course, the figure is between 881-960. Just maintain it, and you can win a smooth approval with no fear of rejection. You can, in fact, easily qualify for difficult mortgage products, for example, the fixed-rate mortgage is usually difficult to qualify. But an applicant with strong finances can do that conveniently. Play safe and win your roof.

4. Your career is not at stake, job switch is smooth
This fact is perhaps not unknown to you that many people lose their job due to degrading in their credit rating. With a reliable payment record, it is a cakewalk to get the attention of the new companies. It becomes difficult to switch to a new job for a better salary. The employers always look for the employees that act responsibly in their finances. A less-than-good credit rating snatched your best career opportunities.

5. It is easy to ask for a discount on availed financial products
You can always ask your finance company to offer a discount on your loan, credit card etc. No one easily denies to you, as a financially strong customer is always in the good books of the finance industry. The existing lenders, investment companies etc. offer you new products. If you deny then to retain you, they prefer to offer you a discount on the existing offer.

6. Get a guarantor easily
Whether you take a home loan or a big size business/machine loan, the guarantor is necessary to back your application. When your rating is good, you can easily convince people to be your guarantor. They find you a safe applicant and get ready to help in getting any loan. Most of the times, borrowers struggle hard if their financial records do not show a score between 881to 960.  It happens due to the lack of trust on the repayment capacity of a person.

7. A Strong image in the money world for having a correct credit mix
A wrong credit mix degrades your credit score. Like, the domination of only credit cards or short-term loans in financial history tells that the person does not make responsible decisions. If you have a good credit score, it means you already have a correct credit mix. The money world takes such people with respect for having a laudable balance in financial life.

8. Get rewards
People with a clean and spotless record always get lucrative reward offers. For example – By paying the instalments of the credit card on time, you may get a great offer. The company may ask you to not to pay the interest. The other benefit too can be availed in the name of rewards like upgrading the current credit card. The precise message is that it is easy to get extra advantages of having a good credit score.

9. No need to deposit security money to utility providers
Internet, phone, cable, electricity suppliers etc. utility providers check your credit score before they open your account with them. A bad credit score user has to give a security deposit to compensate for the risk of the company in case of failed or delayed payments. On the other side, the one with a good credit score can take the same services without giving any amount.

10. You have more power to negotiate on rates and credit limits
Whether it is about the interest rates or the concern to get a bigger loan amount, you can negotiate with good credit as a strong point. You may need a personal loan of £5000, but the lender intends to approve only £3500. In that case, based on your proud credit history, you can easily qualify for a bigger loan amount. Same is the situation in the case of any other financial product.

The ultimate message is….

You should always remain on the right side of credit score performance. It brings many benefits and keeps your financial life full of choices. Money affairs are still complicated, and they do not bear even the slightest weakness in your management. Maintain a prudent credit score and enjoy a peaceful life.

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