Financial Advice

The Perks of Having a Good Credit Score

Over time, there has been much erroneous impression about having credit score. Most people are often under the misguided view that credit causes you to stark of debts. Contrary this perception, having a credit card does not necessarily mean that you would take a loan or open a credit card account. In fact having a credit score offers many secret rewards with remarkable advantages that would certainly benefit you immensely. While this may come as a surprise, this exposition would uncover five incredible benefits of having a good credit score.

  • Getting a smartphone: With the soaring cost of smartphones, it is becoming increasingly difficult to procure a smartphone without opting for a flexible payment plan. Typically, most people would prefer that a prearranged deduction is made from their monthly income over a period of time. This is usually the most convenient option as opposed to making direct payments or being saddled with the bane of an old phone. However, it is imperative to note that a flexible payment plan such as monthly deduction can only be granted when you have a good credit score. Nonetheless, having bad credit score would jeopardize the entire process as you would be required to make payments in advance in such cases. Another alternative available would be getting a co-signer who would pay in the event that you default.  A family plan with someone who has a remarkable credit history can also help to facilitate the process.The Perks of Having a Good Credit Score
  • Securing a home: having recognized credit helps to facilitate renting a home as it is problematic and nearly impossible to do so without having one. Having credit score offers a great deal of reassurance to the landlord that payments would be made irrespective and this is an important consideration and often a decisive factor when landlords are looking to rent out a home as it indicates that you would make prompt payments. Apart from this, having great credit score extricates you from the stress of making down payments and security deposits which are often required when credit score is poor thereby eliminating significant cost. Unarguably, credit score removes additional charges, enhances your chances while expediting the entire process of renting a home.Other alternatives to getting a home without a credit score or making down payments would be through a recommendation from your current landlord which would help to boost your credibility. Also, signing for an extended lease period could help persuade the landlord to rent out the home as this is usually more lucrative.
  • Facilitates the payment of your utilities: utility companies are usually particular about the rate of your credit score as it is offers the reassurance that the services they provide would be paid for which is why most utility companies would want to verify that your credit score is satisfactory. Payment for your utilities and your credit score has a very complementary relationship as prompt payment of utilities enhances credit scores and good credit scores provides reassurance that remove the need for down payments before utilities are provided. Having a respectable credit score would certainly help to eliminate down. Some of the alternatives available when you do not have the right credit score would be having a remarkable utility score. Having a good utility score which is an alternative is often considered a parameter to determine whether payments would be made accordingly.  In other words, utility score is a substitute for credit score. Just like getting a smartphone using a co-signer the same is applicable as a cosigner with great credit score would certainly help avoid exorbitant down payments.
  • It helps with Insurance: insurance companies are more comfortable with individuals that have satisfactory credit score because it provides the reassurance that installment payment would be made promptly. Additionally, insurance companies have identified a trend which reveals a heightened likelihood for clients with poor credit scores to file claims thus posing a greater threat to them.There is an overwhelming tendency for individuals with poor credit scores to have poor earnings and savings. Also individuals with little money usually make trifling claims which is not obtainable with buoyant individuals. Given the aforementioned, it becomes very problematic to obtain great rates when your credit score is below requirements. Regrettably, a good number of insurance adopt this pattern. Insurance companies are also very particular about the frequency of your claims and investigations as this often elicit increased premiums payments.
  • Enhances your chances of getting a job: with competition in the labor market getting stiffer each day, the need to have good credit score has becoming more and more relevant for that competitive edge particularly when applying to certain offices and positions. Credit score is being incorporated into interviews for delicate offices and sectors as most employers see it as an indication of stability, responsibility and credibility which are qualities required for certain jobs. Jobs in the financial sector often use credit score as criteria for employment.More than ever before employers are beginning to use credit score as part of the criteria for recruitment which puts individuals without credit score or with disappointingly low credit score at a disadvantage. However, an alternative to this predicament would be to offer a written explanation that aptly clarifies your credit situation.

Final thought on the importance of having credit score

Many individuals are unaware of the many secret benefits and rewards that come with having credit score. A great credit score offers many interesting benefits and rewards that make many pursuits expedient. It is therefore highly recommended that you begin to direct your efforts towards building your credit score.  For individuals that currently have deplorable credit score, credit repair companies offer an interesting opportunity to restore your credit scores while maintaining a progressive climb. Credit companies adopt a systematic approach towards upgrading credit reports while offering unwavering support in a list of other related areas.

If you are undecided about opening your credit card account, the aforementioned list of rewards and perks that comes with having a good credit score should change your mind. Having credit scores would support many of your undertakings while effectively re-positioning you towards being financially empowered.

This article by Steven Millstein first appeared on CreditRepairExpert.org and was distributed by the Personal Finance Syndication Network.

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