Your credit score has gained importance in the last few years even more, and regularly used to determine your credit-worthiness. But if you think that only credit companies and banks do use and check your credit score you are mistaken. There are loads of types of products you do need a sound credit profile for, starting with car insurance and ending with monthly mobile phone contracts.
Your credit score is used to check if you do have any credit history and if you do what are your abilities of handling finance. All the information that is provided to Credit Bureaus by utility companies, employers, credit card and loan companies, mobile companies, gas and electricity providers, subscription services is analyzed and used to work out your credit score.
Maintaining a healthy credit score is very important in your everyday life and you do need to keep an eye on your credit report if you are looking to achieve your financial goals as soon as possible. Here are some very important reasons why you should aim for a perfect credit profile.
To get accepted for finance
The most important reason you should have a good credit score is that without that it is very hard to get accepted for new finance, and if you are looking to refinance or get a new credit card it is going to be much harder for you. So if you get into financial difficulties or something comes up, like your old car breaks down and you need a new one a good credit score is going to help you sort out a new finance in minutes.
People with sound credit score get better deals
If you do have a good credit rating you are able to take advantage of some offers that are not available for others. Some subscription companies and utility bill providers have some great discount packages but these do not get offered to people with a poor credit rating.
To get a better job
More and more employers are requiring credit checks, and if you do not have a sound credit rating, you might as well say goodbye to your dream job. A few years ago it was only common between financial companies to require a credit check, however these days more and more companies that are requiring a reliable employee are checking your financial and criminal background before offering you a job.
To get a better rate or deal on your finances
It is a known fact that interest rates on credit cards, credit limits and monthly fees do depend on your credit score. So having a good credit rating can actually save you loads of money in the long run.