Your credit score is one of the most important elements of your financial life. What is all about a credit score? Ideally, credit score ratings are principally used to predict your ability to repay a loan. Lenders use them as a way of predicting the risk involved in lending money, which explains why people with a poor credit score find it hard getting loans or why they struggle with high interest rates.
Did you know that your credit rating determines insurance premiums your pay? Most insurers rely on an insurance score to calculate the amounts of premiums you pay. Your credit score ratings are also factored in when calculating your insurance rating. This means that a low credit score can attract additional bonuses while a good score can qualify you for a reduced rate.
Getting a Job
Employers also need your credit score. As much as this is a relatively new practice, most employers have to check the credit ratings of their prospective employees. They do this is a way of trying to assess the levels of responsibility. As much as there are some scenarios, where a bad credit history could be out of your hand, you are expected to improve it to improve your chances of landing your dream job.
Starting a Business
Starting a business requires some investment. Considering that most entrepreneurs require a loan when starting a business, you included, you need to look at your credit score. A good score will make it easy for you to start a business whereas a bad one might limit your access to these funds.
Taking Pressure of Your Spouse
In most cases, when one spouse has a better credit score, it is highly likely that the spouse with a better score will be the one burdened with taking loans. Thus, improving your credit score is an excellent way of taking the financial burden off your spouse’s shoulders. Notwithstanding, parents might also be forced to use their children’s credit.…Read More