The general misconception surrounding Credit Scores is that they are used majorly for obtaining new Credit Cards. The fact is, Credit Scores can do much more than that. The article elaborates on the many benefits that a good Credit Score can unlock.
If you thought Credit Scores were just meant to land you a Credit Card, you are seriously mistaken. Think of your Credit Score as a magic bus in an enormous traffic jam. If you use it the right way, it can navigate you through the complex world of money lending and get you instant access to financial instruments you could only dream of earlier.
Credit Scores are increasingly becoming the go-to resource for banks and other institutions to check your financial stability before they give you access to their loans and Credit Cards. While a good Credit Score can open a world of possibilities for you, a bad score can turn out to be quite a party-spoiler. For the uninitiated, a Credit Score is an analysis of your overall creditworthiness. It looks at your past credit history and determines if you are eligible for a new line of credit which includes Personal Loans, Home Loans and Credit Cards among others.
Additional Reading: Credit Score – Frequently Asked Questions
Not sure what your Credit Score is? Check it now
If you use a Credit Card and always remember to pay your bills on time, chances are you have a better-than-average Credit Score. If this sounds like you, you are one of the few money-managers whom banks would love to get in business with. Let’s take a look at the world of wonders that your Credit Score can unveil for you:
Instant approval for loans
The one thing that irks most loan seekers is the difficulty of obtaining them. Getting a new loan becomes infinitely easier if you have a great Credit Score to back you up. Although, your Credit Score does not immediately guarantee you a loan, it can make the process a lot less cumbersome by weighing in heavily in your favour.
Additional Reading: How to Build a Credit History If You Don’t Have Any Existing Loans
Negotiate what you pay
If you have an excellent Credit Score, you will have the rare privilege to decide your interest rate for the amount you are borrowing. With the help of your Credit Score, you will get access to some of the most attractive interest rates in the market. If that doesn’t sound like something incredible, what does?
Credit Scores are now a part of employee verification process
In addition to the internal screening processes, many MNCs are turning to credit bureaus to pull up credit records of prospective employees. Although your Credit Score is kept discreet, the credit report will disclose your payment record, your available credit and other such details to the concerned employer. If you are on the lookout for new job opportunities, it would be advisable to buckle up and keep your Credit Score in check!
Additional Reading: Is Your Credit Score Good Enough To Get You Your Dream Job?
Get VIP-access to the best Credit Cards
With the perfect Credit Score on your side, it’s time to make friends with Credit Cards of your choice. Get used to the luxury of unlimited privileges, lounge access, shopping benefits and so much more. The hassles of obtaining a credit card of your choice are instantly solved with a well-maintained Credit Score.
Buying your first car
If you haven’t hit a jackpot recently, you are more than likely to avail a Car Loan when you are on your way towards purchasing your first car. Obtaining a loan may take a hit if your Credit Score isn’t good. A great Credit Score can be handy in such situations as your lenders would have reasons to trust your ability to pay them back.
More credit in line for you
The best thing about maintaining a great Credit Score is the fact that it opens for you, a lot more credit opportunities in the future. Be it loans or Credit Cards, you will get access to higher credit limits and lower interest rates. Rest assured, your Credit Score will ensure you a seamless ride to financial freedom.
Don’t have a Credit Score that makes you super proud?
Roll up your sleeves and get set to make a shubh-arambh this new year. Although your Credit Score won’t improve overnight, keeping track of your finances from time to time will ensure that you are on the right track.
Additional Reading: How Long Before Your Credit Score Starts To Improve?
Think you are ready to do more with your Credit Score?
Explore a range of possibilities as you discover the most lucrative rates, attractive discounts and much more with BankBazaar.