Benefits Of A High Credit Score

Upholding an excellent and responsible credit score is always of the essence. Otherwise, you will be running a huge risk of not being approved by the creditors.

You can refer to the Credit Score Rating Scale if you’re not sure what scores are considered high or low. When your credit score belongs to the higher side, even if it’s not in the 800’s, say, 720, there’s pretty much no need to try and raise it as lenders often categorize you with those of higher scores. The reason for this is because the risk of default on loans is basically low for individuals with credit scores this high.

If you have high scores, it follows that lenders will most probably give you very favorable rates. As a matter of fact, you can even ask for the best possible conditions there are. Having a score this good can almost assure you will be eligible even for big ticket items you are eyeing on. Lenders even let you borrow more than 80 percent of the value of your home without even requiring private mortgage insurance. You are seemingly going to get a home equity loan or line of credit with an interest rate equal to the prime rate, or even below it.

Having a good credit score does not only mean you are qualified to buy a house or a car, but it gets you on top with regard to employment, particularly with financial establishments. Truth be told, many companies these days only hire people with credit scores of at least 720. Credit scores are indicators of their work ethics, loyalty and their decision-making abilities.

Nevertheless, just because you haven’t borrowed any amount of money doesn’t mean you have a high credit score automatically since credit score is based on how you borrow. Let’s put it this way, if you don’t borrow, you cannot score well, there’s simply no basis. You borrow to establish credit.

The one thing we all need to have is discipline. Know your credit score and keep it high, or work on getting it high. You’ll never know what luxury you can get in having a high credit score.

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