Your credit score is a number based summary of your financial history and credit worthiness. Banks and lenders easily sanction loans and credit cards to people with a good score. Credit bureaus decide your score after getting a record of your repayment history and after the evaluation of your spending behaviour. Your expenses and credits decide the final score of your credit report. A major component of credit score is your repayment history, which carries around 35% weightage. So, if you wish to maintain a good score, pay all your dues on time.
Some of the areas where credit score play an important role are:
Credit Score Impact on Loans
Be it home, car, business or personal loan, the first eligibility criteria for any loan is a good credit score. Whenever we apply for a loan, the first thing the lenders check is our credit score. If you have a low score, then the chances of rejection automatically go high.
Credit Score impact on Jobs
These days, there are a lot of companies check the credit score of their prospective candidate. A bad score indicates that the person is either not able to manage his/her finances or that he/she is under financial stress. This may also affect his work and he/she may not perform up to their complete potential.
Credit Score Impact while Moving Abroad for Education or Job
Even though your score has nothing to do with acquiring a visa. Banks in other nations do check with the banks of your origin country, before sanction you a credit card. This is widely practiced in the USA and UK; hence, one should be careful about it.
Credit Score Impact on Cost of loan
Whenever we apply for a personal loan, the first thing we ask is about the interest rate. Even a little dip in the rate of interest, makes a lot of difference in the repayment amount. Hence, if you have a good credit score, you automatically qualify for a lower rate of interest. However, this is not the case when you have a poor credit score. A poor score even if it qualifies for a loan, will have a higher rate of interest.
Higher Limits Credit Cards
Again, having a high credit score makes you a favourable candidate in front of the lenders. A good credit score automatically qualifies you for a higher limit. Therefore, it is of paramount importance that we start practicing for a good score from the beginning.
Emergencies, needs or any desire to purchase something comes with its own limitations. That is why we should always strive to have a good score. Maintaining a good credit score is a blessing during all situations, as the accessibility of loan increases rapidly.
Hence, now is the time for you to start working on your credit score and apply for a Personal Loan on Finserv MARKETS, which can will help you during emergencies and fulfil your dreams. Visit Finserv MARKETS and benefit from the features like quick disbursement, low EMI, minimal documentation and a list of other features. What’s more? Your online personal loan application can be approved under just 3 minutes and the loan amount will be credited to your bank account within 24 hours! Apply for personal loan with us, today!
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