Why it’s important to have a good credit score

This article was written by Paulo Nogueira of Just Loft Conversions

A favourable credit report is important for anyone to have. Loans are a necessary part of life for almost all of us. Setting up a solid credit report and maintaining a high credit score may have a dramatic impact on your quality of life now and in the future when you’re considering applying for a loan or even a credit card.

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Getting a Personal Loan

From time to time you are bound to need to get a loan from the bank whether it’s for a home improvement project such as a conservatory, loft conversion, basement conversion or a home extension.

These could add significant value to your home and may be useful as oppose to moving home.

 

Buying a Property

Purchasing a house is one of the best investments you can make in your own future. It’s also one of the most difficult ones to attain if you don’t have a good credit rating. The recession caused real estate foreclosures and such transactions aplenty. Actually though the housing market has rebounded, banks are still careful of lending, with more stringent requirements than ever to qualify for a loan.

If you re also not willing to buy a home, it is crucial to know that renting a home involves a credit score checking for most people now. If you show delinquent credit, you may well not be able to rent a house or apartment, or you may have to pay a larger deposit.

 

 

Purchasing Large Ticket Goods on Credit

 

You may wish to do additional works on your home at some point whether it may be painting and decorating works, electrical re-wiring or replumbing of your home building works such as a new roof, new kitchen, new bathroom or other high priced rebuilding projects.

To do this you may need to borrow money to be able to do so and having a good credit score may be needed when working with them on their finance deals, as many of these companies work with finance companies to offer low interest loans to produce their works.

 

Buying a Car

This is a common purchase, and many people take out financial loans when they buy a vehicle. Car and truck loans are much smaller than house loans, so they’re typically better to get with a poorer credit history. However, a low-quality credit score is only going to be eligible you for high interest levels and a larger deposit on a vehicle. This kind of can mean you pay thousands more for the same car compared to someone with good credit.

Once you buy that new car, you will need an auto insurance coverage. Just about all insurance companies now factor your credit rating when determining your premium payments, so good credit can save you money on this part as well.

 

Starting an Organization

In case you’re thinking about starting a small business and desire a business loan, your credit rating and history will factor into your eligibility for small company financing. Regardless of whether you’re starting a business from scratch or trying to get the funds to expand, your individual credit score will affect your ability to have a loan for your business.

 

Getting a Job

A large number of employers are now working credit checks on possible employees prior to employing them. This is especially common in government agencies and financial sectors. A negative score or report could potentially keep you from being hired.

 

Finding Lower Interest Rates

Although a good credit report is a crucial factor in obtaining any type of financial assistance, many banks are still inclined to give loans to individuals with poor credit. If your credit is damaged, you will have to provide more paperwork for your loan. You will most likely be hit with a higher interest rate as well. This is how financial institutions outweigh the associated risk of giving you money.

If you need better interest levels to save yourself money in the long run, keep that credit score high. Work to mend your credit score by making house and car payments on time, paying down loans before the end of the loan period, and paying down your credit card in full every month.

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