The Beauty of Good Personal Credit-worthiness in Business
In business, most people always strive to maintain a good personal credit score. When a business person is able to pay his bills on time without default, he is said to have a good credit score.A good score is usually 700 and above from a range of 300 – 850. For this reason, it is important to ensure that you have a good credit score in order to be able to borrow finances when need be. It is important to note that your score can reduce or inflate the lending interest rates. Subsequently, always ensure that you retain a good personal credit score.This will be achieved by always ensuring that every money borrowed is repaid in time without default.At the same time, make sure that your credit cards are used wisely and avoid overdrafts. Here are the main benefits of maintaining a decent personal credit score.
Obtaining a credit card from a financial institution becomes very easy for someone who has a good personal credit score.This is because the institutions will always check your credit history before they issue you with a card. The motive here for them is to know whether you meet your deadlines when it comes to payment of bills. Subsequently, they will compare your earnings with your manner of spending to try and establish whether you a big spender. The bad news is that you will not be given a loan if you already have existing loans that you haven’t repaid.
On the other hand, a good score will be very useful when you want to buy a house. The reason behind this is that a mortgage has high-interest rates and it is a long-standing commitment. It is wise to note that a mortgage demands proper administration and if the contrary happens, someone may lose their home and become penniless. In addition to that, when looking for a house to rent a good credit score will be of merit. The reason behind this is that house owners will be interested in knowing your credibility.
Additionally, you will be able to access a credit facility to finance the purchase of your car, if you are credit worthy.Every business owner who deals with long term lending will always rely on your score to give you their credit facilities.Subsequently, you will be able to negotiate a lower rate of interest which could save you a lot of money.
In most cases, utility accounts like electricity and telephone lines that demand for deposits before accessing the service will exempt you from those deposits.This means that you will get these services immediately when you apply for them.