We are always looking for effective ways to save money. Did you know a good Credit Score can help you boost your savings? Read on to know how.
We are always on the lookout for effective ways to save money. Preoccupied with our constant urge to save big, we tend to overlook some of the smaller but sustainable saving opportunities. Did you know a good Credit Score can help you boost your savings?
Saving is one part pinching pennies and the other getting the most bang for your buck. A good Credit Score helps you lock the best deals on loans & Credit Cards. Want a good Credit Score? Pay your Credit Card dues and loan EMIs on time, keep your credit utilisation ratio under 30% and keep checking your score regularly. We’ll tell you how you can check your score for FREE later in the article.
Now let’s look at how having a good Credit Score next to your name can help you save money.
See your name printed on uber-elite Credit Cards
Banks check your Credit Score to evaluate your eligibility for a loan or a Credit Card and to take a call on whether to approve your application or not. When banks give weight to your score, why shouldn’t you check it too, right?
A good score tells lenders that you will be regular and responsible with your debt repayments. This assures them that they will be able to recover the principal amount and the interest from the borrower without a hassle.
What are banks looking for? They are looking for a Credit Score of 750 and above. You can always get a card with a not-so-flattering score, but it probably won’t be the best one available.
A good Credit Score, however, instantly boosts your eligibility and you can apply for premium Credit Cards. Premium cards translate to better features, more cashback, and special discounts. Who wouldn’t appreciate free movie tickets or a flight ticket? A good Credit Card, if used wisely, can boost your budget.
If you want that platinum or gold Credit Card in your wallet, then start building a good Credit Score.
Additional Reading: What Your Credit Report Says About You
Get your loan at favourable terms
We all need a loan some time or another. If it’s a Car Loan or a Home Loan, you can plan ahead and tread softly. But what if you need a Personal Loan for an emergency? A good Credit Score will help speed up the application process.
The loan application of an individual with a good Credit Score is likely to get approved faster. In this case, the applicant also stands a good chance of getting the desired loan amount without a hassle. In a nutshell, a good Credit Score will help you get the best deal on a loan.
If you face a financial crisis and also lack a good Credit Score, then you stand to face another setback – a rejection of your application. This will push your score down further and you might have to agree to a high rate of interest and a small loan amount to avail a loan.
Currently, in India, banks do not consider your Credit Score to determine the interest rate. But if you meet all the eligibility criteria, have the right documents and also flaunt a good Credit Score, then you can definitely expect to get your loan on good terms.
Many financial advisors and businessmen swear by the benefits of taking a loan. For one, it allows you to meet your financial demands immediately with the benefit of repaying in instalments. Taking a loan also prevents you from disturbing your savings, emergency fund, or a healthy investment portfolio to fund your needs.
Gives you bargaining power
When you apply for a loan or Credit Card, the best savings will come in the form of fee waivers and low-interest rates. Now, a good Credit Score alone cannot assure these benefits, but it sure gives you the edge to bargain for them. If you have a good rapport with your banker, you can bargain with for zero loan processing fee or no prepayment/foreclosure charges. You can even ask for a Credit Card that has more features than the one you had in mind.
Additional Reading: The Fault In Your Credit Score And Not Your Stars
A good Credit Score is a sign of good money management
A good Credit Score is an indicator of your money management aptitude. The better you manage your debts, better your score. And as a good money manager, you most likely have your expenses under control. That also means a well-kept Savings Account. You probably are already a pro at all thing money.
Here’s the deal! We’ll help you check your Experian Credit Score for free. Once you check your Credit Score at BankBazaar.com, we’ll inform you every time your report gets updated. That too for FREE! You can also view your credit report and see your rating on each factor that goes towards building your score. You cannot say no to this offer!
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