If you have been using a credit card for a while now, then you it’s assumed that you are always told to maintain a good credit rating, but do you know why? Good credit rating is not just about getting a better credit card, it affects a lot more than that. We are here to tell you the benefits of having a good credit rating.
Top 6 benefits of maintaining a good credit rating: –
1. More chances of getting loans approved: – Having a good credit history is really important when it comes to getting your loans approved. Be it any loan, if you have a good credit rating, then you can get approved for it easily.
When you apply for a loan, the bank or the lender checks your credit history to find out whether you will be able to pay the money back or not. Thus, the better the credit rating, the more chances of having your loans approved easily.
2. Get the best credit cards: – You must have seen the advertisement of those amazing credit cards with very low interest, better rewards, more cashback, etc., and they all require a good credit rating.
With these cards, you can get a bigger credit limit in addition to all those features mentioned. Thus, you must have a good credit rating if you want to enjoy all these features. Check this article, https://www.crediful.com/credit-cards-for-good-credit/, to help you decide which credit card is best for someone like you who has good credit rating. Of course, if you are a responsible person when it comes to your finances, you deserve the best.
A good way to build a better credit rating is to ask a financially responsible friend of yours to add you as a co-signer on a loan or his credit card. This way if he makes regular payments, it will appear on your credit card too, but be careful about whom you choose as if they are financially irresponsible, then it will affect your credit history and lower your credit rating.
3. You will have more negotiating power: – With a good credit rating, you will be able to negotiate your way out of the high rate of interest on credit card or loans. It is recommended to negotiate with the companies that have offered you great offers based on your credit history. With a low credit score, you will have a hard time getting a loan or a new credit card approved.
4. Get bigger credit limits: – A good credit rating gives you the opportunity to get a higher credit limit. Since you already have a good credit history, it shows that you pay your debts on time, and hence the bank will be more likely to lend you more money.
You can obviously get loans and credit cards without having a good credit rating too, but they will be of higher interest and lesser time period. With a good credit rating, you can get a higher credit limit with a longer time period.
5. Get better car insurance rates: – According to most insurance companies, people with low credit rating make more claims and get penalized with a high insurance premium. If you have a higher credit rating, then you will most likely be paying lesser amount of money for the insurance than those people with lower credit rating.
6. More chances of getting a better job: – Employers like to look at the credit history of employees before hiring them. They check the credit rating to know if you are responsible enough. A better credit rating shows that the person is more responsible.
Thus, these are the top 6 reasons why it is always best to maintain a good credit rating. We hope you enjoyed reading the article and understood the importance of having a good credit rating. Good luck!