In business, most people always strive to maintain a good personal credit score. When a business person is able to pay his bills on time without default, he is said to have a good credit score.A good score is usually 700 and above from a range of 300 – 850.This means that, if you have a good personal credit score, financial institutions will be willing to lend you any finances that you may require.In addition to that, your interest rate will be determined by your personal credit score. Therefore, maintaining a good score is a primary aspect of business operations.This will be achieved by always ensuring that every money borrowed is repaid in time without default. It is also your duty to ensure that credit cards are used properly without incurring overdrafts.The following are the advantages of a good personal credit score.
In order to obtain a credit card from a bank, a good credit score will be a great determinant to whether you will be issued with it or not. The reason behind this is that credit facilities check your credit history before issuing you with the credit card. The reason behind this, for them, is to know if you are a defaulter in paying your bills. Subsequently, they will compare your earnings with your manner of spending to try and establish whether you a big spender.If you have existing loans that you haven’t paid, then you may not qualify for a loan.
On the other hand, a good score will be very useful when you want to buy a house. It is important because buying a house is a long term investment which attracts high-interest rates. On the other hand, someone may lose their house or become insolvent if a mortgage is not managed well. In most cases, even when looking for a rental apartment, a good credit score will come into play.This is because the landlords will check on your credit status.
Thus, it is very easy to obtain a loan to finance the purchase of a car if your credibility is great. 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. The great news is that, you will enjoy these services as soon as you apply for them and without any frustrations of delay.