If you presently have unimpressive credit history, it's time for you to act and work towards credit improvement.
Why is it important to repair bad credit? What are the benefits that you can enjoy if you have a good credit standing? 1.
Reduced interest rates.
Whether you are applying for a personal loan, mortgage, car loan, credit card, or even insurance, the rate of interest you get will depend on your credit score.
Needless to say, lenders reserve their best deals for customers with reliable payment history.
A low score may indicate that you have not been timely with your payments or that you may have past due balances with other creditors.
Thus, the higher your credit score is, the lower your interest would be.
2.
No to security deposits.
People with a bad credit rating often have to submit cash deposit to be granted a loan or a credit line.
It doesn't have to be the case if you have an excellent credit rating.
Creditors would be confident in your repayment capability without requiring a guarantee.
3.
Easy approval or No rejections.
Having poor credit would make it harder for you to win the approval of your preferred lender.
Even worse, your application may get rejected which can hurt your credit standing even more.
4.
Enjoy a higher credit limit.
A low credit score limits your privileges particularly with regards to your borrowing limit.
Why be interested with a high credit line? When managed responsibly, a higher limit keeps your credit usage low so you can maintain a good credit score.
5.
Keep away from stress.
Repairing your credit history means paying off your debts and keeping up with your current payments.
Maintaining good relationship with your lenders saves you from the pressure of having to deal with abusive debt collectors.
6.
Get hired for a job.
If you thought creditors are the only ones who are interested about your credit score, you are mistaken! Even employers check credit reports when hiring manpower or awarding promotions.
Having an impressive credit rating will surely give you the edge you need over your competitors.
7.
Rent where you want.
Landlords and apartment owners also do a credit check before accepting tenants.
If you have a bad credit history, you may not be able to rent the place you want because the landlord doubts your capability to keep up with your rent.
8.
Avoid predatory subprime lenders.
If you have bad credit, your options may be limited to subprime lenders.
Many lending companies that offer loans for bad credit may ruthlessly take advantage of you, particularly if you do not know which lender to turn to.
9.
No need for a co-signer.
Many lenders who offer loans or credit cards for bad credit require a co-signer to back-up your debts.
Such an arrangement puts both yours and your co-signers credit history on the line.
Add to this, it may be difficult to find someone with good credit history to co-sign on your behalf.
Repairing your personal credit saves you from the hassle of not being able to apply on your own.
10.
Get approved for a business loan.
If you want to start your own business, it will be very difficult, even impossible for you to get a business loan if you have bad credit.
But why wait until you need a business loan before repairing your bad credit? The earlier you start, the less work it will be for you later on.
Why is it important to repair bad credit? What are the benefits that you can enjoy if you have a good credit standing? 1.
Reduced interest rates.
Whether you are applying for a personal loan, mortgage, car loan, credit card, or even insurance, the rate of interest you get will depend on your credit score.
Needless to say, lenders reserve their best deals for customers with reliable payment history.
A low score may indicate that you have not been timely with your payments or that you may have past due balances with other creditors.
Thus, the higher your credit score is, the lower your interest would be.
2.
No to security deposits.
People with a bad credit rating often have to submit cash deposit to be granted a loan or a credit line.
It doesn't have to be the case if you have an excellent credit rating.
Creditors would be confident in your repayment capability without requiring a guarantee.
3.
Easy approval or No rejections.
Having poor credit would make it harder for you to win the approval of your preferred lender.
Even worse, your application may get rejected which can hurt your credit standing even more.
4.
Enjoy a higher credit limit.
A low credit score limits your privileges particularly with regards to your borrowing limit.
Why be interested with a high credit line? When managed responsibly, a higher limit keeps your credit usage low so you can maintain a good credit score.
5.
Keep away from stress.
Repairing your credit history means paying off your debts and keeping up with your current payments.
Maintaining good relationship with your lenders saves you from the pressure of having to deal with abusive debt collectors.
6.
Get hired for a job.
If you thought creditors are the only ones who are interested about your credit score, you are mistaken! Even employers check credit reports when hiring manpower or awarding promotions.
Having an impressive credit rating will surely give you the edge you need over your competitors.
7.
Rent where you want.
Landlords and apartment owners also do a credit check before accepting tenants.
If you have a bad credit history, you may not be able to rent the place you want because the landlord doubts your capability to keep up with your rent.
8.
Avoid predatory subprime lenders.
If you have bad credit, your options may be limited to subprime lenders.
Many lending companies that offer loans for bad credit may ruthlessly take advantage of you, particularly if you do not know which lender to turn to.
9.
No need for a co-signer.
Many lenders who offer loans or credit cards for bad credit require a co-signer to back-up your debts.
Such an arrangement puts both yours and your co-signers credit history on the line.
Add to this, it may be difficult to find someone with good credit history to co-sign on your behalf.
Repairing your personal credit saves you from the hassle of not being able to apply on your own.
10.
Get approved for a business loan.
If you want to start your own business, it will be very difficult, even impossible for you to get a business loan if you have bad credit.
But why wait until you need a business loan before repairing your bad credit? The earlier you start, the less work it will be for you later on.