We have told you. Your credit score is your cover letter when it comes to finance. Although it can be a headache for many, we are talking about the first impression you give when it comes to financial actions.
Therefore, having a good credit score is necessary, if at any time your intention is to request monetary assistance from the bank or a financing process. How does the numerical credit scale work? An excellent score is between 700 and 850 points and a low score falls in the 300.
But why do you need to have good credit? How does it help you? Here we share some basic benefits of having a good or excellent score.
1. Apply for loans
If you want to apply for a loan, it is very likely that they require your credit history to know how responsible you are with your payments. A good track record will be synonymous with feasibility and you will qualify for that loan you need so much. Another benefit is that you will get better interest rates with good credit. What better than that?
2. Buy a house
Whether to rent or buy a property, credit history is the route the bank or seller needs to confirm how well or badly you are doing in financial matters. Choose to gradually build your credit so that when making these types of investments, you enjoy good financing options.
3. Acquire a car
As with buying a house, an acquisition of a motor vehicle will require an inquiry into your credit. In the same way, your credit can be a key piece in the insurance offer you get.
4. Get a credit card
The classic. To obtain a credit card you need a good track record. In the same way, this may be one of your first options to build the credit by paying it on time and avoiding additional charges.
5. Open a business
As you read it. Your credit, like the one you will be building with your business, is part of the initial loan application to open your business. Do you plan to have your own work? Think about your credit history!
6. Have peace of mind
One of the best benefits of credit history: peace of mind. Having the peace of mind that you can enjoy good financial health will give you peace and make the road easier when you go to apply for bank actions, such as loans, for example. It is your best reward for a great responsibility with your accounts!
Any doubt about the benefits of having good credit? Build it now with well thought out and informed decisions. Question private expenses, evaluate your purchases and consider talking with a financial advisor so that you can form your history in the best way.
Time will prove you right and good credit will bring you the peace of mind you need for financial health in optimal conditions! This is your moment!