Your credit history can impact a lot of important things in your life – from getting a new home to getting your dream job. Here are 5 ways your credit history can affect your life:
Buying A Home
Before you start searching for your dream home, don’t forget to check your latest Credit Score. Banks usually prefer a Credit Score of 750 or higher to qualify you for the best Home Loan rates available.
Your Credit Score is an indicator of your creditworthiness and is used by lenders to predict whether you will pay your financial commitments on time. With a lower score, you may get a few Home Loan deals but lenders will charge you an exorbitant interest rate and a higher down payment amount.
Getting A Credit Card
Did you apply for a Credit Card with amazing rewards and benefits and got rejected? Well, we suggest you check your latest Credit Score right away! In order to be eligible for the top Credit Cards with generous rewards like free movie tickets and petrol, sign-up bonuses and complimentary lounge access, you need to have a good or excellent Credit Score.
If your score is not in a good shape right now, don’t get disheartened. Work towards improving your score by paying all your bills on time and using less than 30% of your credit limit. Also, don’t apply for too many Credit Cards as this will make you look credit hungry to lenders and too many hard inquiries can hurt your score.
Getting A Car
Just like other financial products like a Home Loan or Personal Loan, banks check your Credit Score to qualify you for a Car Loan. The better your score, the better your options will be. If you have a low Credit Score, you will likely have to pay a higher interest rate or banks can also reject your application.
Starting A New Business
Planning to start your own business and looking for funds? We suggest you check your Credit Score before applying for a business loan. If your score is anything less than 750, banks may reject your loan application. With a good credit history, you can negotiate with lenders for better deals and interest rates.
Getting A New Job
If you are on the lookout for a new job, make sure to update your Credit Score along with your resume! Some employers reach out to credit bureaus to collect information about a candidate’s credit history before taking a final employment call.
If you have a low score, it could imply that you are not good at managing your finances or you haven’t cleared your debts and can make you look irresponsible to the hiring manager.
BankBazaar.com is India’s leading online marketplace for loans and credit cards.