Why It’s Worth Having A Good Credit Score

benefits good credit score increase rating

It is possible to get by when you have bad credit, but it isn’t easy. The chances are, you will have to pay more for services and credit, and it can be difficult to use services that regularly run credit checks, from mortgage lenders to mobile phone contract providers. 

In fact, our credit score is having an influence over most aspects of our regular spending, from our council tax to our Netflix subscription. This means having a good score is more helpful than ever. Here are some more reasons to look at boosting your score. 

Low Interest Rates 

The interest rate takes up a fair chunk of any loan or credit card you take out. The amount of interest you pay is often directly linked to your existing credit score. So, if you have a good score when you borrow or apply for credit, you’re more likely to access the cheaper interest rates because your score reflects how good you are at paying credit back. 

Plus, you’ll pay off the loan, credit card, or other service quicker if you have a smaller amount of interest to pay – and this reflects favourably on your score, as well as freeing up your money for other things. 

More Access To Different Services 

If you have a positive score, you’ll be able to access more loan products and services than if your score isn’t good. This is because you’re considered more of a risk if you’ve got a history of not making payments on time or there have been other factors that make you appear to be a gamble when it comes to finances. 

While there are services available for those with poor credit, for example car financing specialists Go Car Credit, it’s always better to try to improve your score where you can before you apply. 

More Likely To Get Approved 

If you’ve had a poor credit rating for a while, you might be put off applying to borrow more, especially if you’ve been turned down before. Having a stellar credit score doesn’t necessarily mean you’re guaranteed approval as lenders look at several factors, but being in a good place with your rating means you increase your chances of being approved. 

Increase In Housing Options 

If you rent, potential landlords or letting agents tend to check credit scores to see if potential tenants are in a good position financially. If you have a higher score, you’re more likely to be approved for a rental, meaning you can look for somewhere to live with peace of mind. 

Be sure to check your score using one of the main credit referencing agencies: Experian, TransUnion and Equifax. Knowing your credit score gives you the chance to see where there are opportunities to improve it.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, & Blog Outreach Services