Importance Of Having Good Credit Score
Posted on June 1, 2017 | By Denise Selders
A credit score plays a vital role in determining your financial background. If your credit score is good, then you will get many benefits such as new loan, new credit card, good interest rates and increased credit limit. The credit score reflects how you are managing your financial transactions. If you have good credit score then you can have a proper control of your financial transactions. There are many ways that you can find out your credit score. You can search the net on how to find out what a good credit score is. You can get some investment related news at http://money.cnn.com/.
The credit score will be a three digit number, and the maximum credit limit is fixed at 1000 points. The score will be classified into four to five groups to determine your credit score details. The first group will be less than 550 points ranked as bad. The second group points are from 551-649 classified as poor. The third group will be from 650 to 699 rated as fair. The four group points will be from 700 to 749 which ranked as good and finally above 750 points are classified as excellent.
Other than helping to find out your financial situation a frequent checking of your credit score may help in fighting against fraud. If there is a change in the credit score, then there could be additional account opened under your name or a new credit card application has to been filed.
Many factors have been considered while determining the credit score. All these details will be available in your detailed credit score report
If you are searching for a rental house, many house owners want to check your credit score to find out your previous payment history and whether you have cleared the payments on time. Even when you are buying a product on loan basis, the company will check your credit score to find out whether you can repay them on time without any problem
The mortgage is considered to be one of the biggest deals in your life. When you are planning to go for a mortgage, make sure that you have an excellent credit score so that your mortgage will be easily approved. If your credit scores less, you will not probably sanction by the regulators for the loan for you as there is a possibility that loan can turn into bad loan. Otherwise, the rate of interest will be on the higher side if they are sanctioning the loan.
The rate of interest on any loan mainly depends on your credit score. If you have a good credit score, then your rate of interest will be less, and you have to pay more interest in case your rate of interest is less.
Some insurance companies will provide you discounts on the insurance amount if you allow them to view your credit score. If you have good credit, then you will get some good discount. Ensure to pay all your loans and credit cards payments on or before the due to maintaining the good credit score