The Beauty of Good Personal Credit-worthiness in Business Most people in business always want to be creditworthy for smooth business operations. When a business person is able to pay his bills on time without default, he is said to have a good credit score. In most cases, a good score is reflected by not less […]
Most people in business always want to be creditworthy for smooth business operations. When a business person is able to pay his bills on time without default, he is said to have a good credit score. In most cases, a good score is reflected by not less than 700. For this reason, it is important to ensure that you have a good credit score in order to be able to borrow finances when need be.In addition to that, your interest rate will be determined by your personal credit score. Subsequently, always ensure that you retain a good personal credit score. For this reason, it is always important to pay all your bills in time without fail.At the same time, make sure that your credit cards are used wisely and avoid overdrafts.The following are the advantages of a good personal credit score.
Financial credibility will be of help to you when you need to obtain for a credit card from a financial institution.This is because the institutions will always check your credit history before they issue you with a card. The motive here for them is to know whether you meet your deadlines when it comes to payment of bills. Additionally, the lenders will match your earnings with your level of spending to see if you manage your money wisely.If you have existing loans that you haven’t paid, then you may not qualify for a loan.
Always remember that to qualify for a mortgage, you need to be credible pertaining to your borrowing. It is important because buying a house is a long term investment which attracts high-interest rates. It is wise to note that a mortgage demands proper administration and if the contrary happens, someone may lose their home and become penniless. In addition to that, when looking for a house to rent a good credit score will be of merit. It is important because landlords will check your credit history before allowing you into their houses.
Additionally, you will be able to access a credit facility to finance the purchase of your car, if you are credit worthy. It is wise to note that most of the business people will only give credit to credit worthy people based on their credit score.Subsequently, you will be able to negotiate a lower rate of interest which could save you a lot of money.
Additionally, most of the companies that deal with utility accounts will not ask for deposits for electricity connections or telephone lines. These services will be available straight away after application.