Buying a home, traveling the world, guaranteeing good health services or having your own vehicle are life goals that can be achieved more safely if you have a good Credit Score.
Remember that, when you have a card, receive a loan or hire a telephone service, you are already evaluated by the Credit Bureau, which reviews the management of your finances and gives your references to companies in the financial sector. If you have 650 to 700 points, you are a good user of credits, and if you have 700 to 850, you are an excellent user.
Here are five benefits of improving your credit score:
1. Low Interest Rates
When you have a good credit rating, they offer you loans and cards with lower interest rates, since they will consider you a reliable and responsible user in managing your accounts.In addition, if your Score becomes excellent, you can access Platinum cards and reliable, low-interest loans.
But be very careful, this does not mean that you should automatically accept these offer if you are going to incur debts that you will not be able to pay. Remember that you should only accept a credit card or loan when you really need it.
2. They will Approve you Long-Term Loans
A good score opens the doors to easier access to long loans, such as mortgages or automobiles, which are loans that institutions only grant to people with good profiles.
Of course, remember that you will pay these commitments for many years, so you must, before hiring them, you must make sure that you really can have the solvency to do so. Also, do not forget to compare before purchasing one.
3. Access to Credits from Loanman Companies
One of the most important advantages of improving your credit score is that you will be able to access the loans“직장인대출” offered by loanman companies, which have multiple advantages, such as interest rates well below those offered by traditional institutions and less commissions, in addition to the procedure is completely online.
Many of these companies focus on people with a good credit rating, as they need to keep their interest rates low and they do this by having a low past due portfolio. So improving your Score will help you save a lot in interest and time, thanks to companies like these, which have fair loans.
4. Higher Credit Limit
In general, the credit card we use has a spending limit that we cannot exceed, which can increase if your Score does so, since the financial institution will trust you more and will be willing to lend you more money.
Just remember to avoid mistakes and turn it into a “poisoned gift”, making compulsive spending that leads you to over-indebtedness. A very useful tip: never exceed 50 percent of your credit limit, as that can cause your Score to go down.
5. Consolidate Debt
If you have several current loans or credits, improving your Score will allow you to be more easily approved for a debt consolidation, that is, a loan with lower interest to pay your existing debts.
This option allows you to focus your efforts on a single payment and save up to half of your interest, don’t you think? You can check it using this simulator.
It is Possible to Pay less Interest on your Debts?
Let’s suppose that you got into debt and you are paying too much interest on your loans and credits, so you are interested in unifying your financial commitments in a single payment, which will help you save interest and focus on a single debt.
This option exists and of course the banks do not want you to know it. It is known as debt consolidation and, normally, it is the financial technology or Loanman platforms that provide this service, since their rates are much lower than those of a traditional financial one.
So now you know, improving your Score really brings excellent benefits for your personal finances, which includes access to better credits, are you ready to decide to increase your credit rating? Cheer up!