Whether you want to purchase a house, a new car, or pay your college fees, you need credit. However, this three-digit score is no longer only used by financial institutions to determine your trustworthiness in obtaining a loan from them. To paint the complete picture, here are two reasons which highlight the importance of having a good credit score:
1. It becomes easier to rent a house
Did you know that certain landlords go through your credit score to determine whether it is a wise choice to rent out their property to you? In the eyes of the landlords, they look at the rent they receive as the equivalent of repaying a loan. If your credit score is not up to their expectations, then they won’t give you the apartment.
2. It affects the chances of getting a job or promotion
Although it is a controversial topic, there are a large number of employers who check your credit score, during the hiring process. Your credit score is a reflection of your financial responsibility. Also, if you are in an executive or finance-related position, and your employer is considering a raise or promotion, he/she will go through your credit score.
How to get a good credit score?
1. Always pay your bills on time
Whether it is your phone bill, utility bill, loan repayment, or credit card payments, make sure that you pay all of them on time. Making late payments or forgetting to settle your bills every month will reflect on your credit score.
2. Ensure the balance on your credit card is low or zero
A great way to improve credit score is to keep track of the balance on your credit card. If the balance is high, it has a significant negative impact on your credit score. Always make sure that the balance is always lower than 30%.
These are the two techniques you can use to build your credit score. Another way is to take a car loan with a repayment plan that fits within your budget perfectly. Thanks to TakeTheDrive, a premier financial institution, you get the luxury of getting the car of your dreams, along with a repayment schedule that won’t put a dent in your budget. Fill in their online application today!