Credit plays an important an important role in your life affecting the purchases you make and so much more. The more insight you have about credit, the easier it is to strengthen your financial well-being. The object of obtaining a good credit score is to provide you with a better opportunity to qualify for loans and better interest rates due to a great credit score. I will proceed to list three beneficial reasons why a good credit score is what we need in 2018.
First, we will talk about ” Credit Scores and Loans “. All financial institutions seek credit scores as a base to issue loans. It is important that each one of us maintain a good credit score. These scores will represent us when we need money, and more significantly determine the interest rates charged on the loans. For example , a transaction from a merchant that charges you 15 per- cent (APR) , as opposed to 5 percent (APR) could mean the difference of hundreds, and depending on what you are purchasing, thousands of dollars paid with the higher rate. By getting a free credit score, borrowers can know where they stand, in terms of getting loans sanctioned.
The second reason why a good credit score is what we want, is because as long as we are beholden to ‘ Financial Institutions ‘ , they do the lending, and we do the borrowing. It is determined from our income, repayment records, over drafts, and such that credit bureaus provide a credit score that will either have us paying significantly more, or significantly less. The credit scores are in turn used by financial institutions, to determine if the borrower can be lent the amount and to estimate the payment capacity of the borrower. Today, FICO credit scores are the most widely used scores, in addition to the three major credit bureaus Experian, Equifax, and Transunion among others. Provided we are responsible maintainers of our credit all of the scores there should be little or no variance between credit bureaus.
The third, and final reason to have a good credit score is to have more options, and easier access in the financial arena. Credit scores usually range from 300 to 850. An individual who is able to maintain a score above 720 or 750 is said to have a good credit score. Obviously, if a person requires a loan, he should try to improve his credit score, to get loans easily and to receive lower interest rates. The credit score is an individual score. You will get the credit, or you get the consequence. We offer a great on-line Credit Repair and Credit Monitoring System, called http://www.myecon.net/750-monitoring/ part of our fantastic” Smart Money Kit”.
Credit is an important part of our society, so cherish your credit history and your credit score. Make it just as important to you as your good name and keep it clean and pristine ; it can mean so much to our future.
By Tyrone H. Muhammad
Executive Vice-President
Do For Self Enterprises