The importance of having a good credit score in 2016

An impressive credit history can benefit you in ways you never imagined. Consider being able to access the following:

1. Higher credit card limits

Who would not want to have a greater debt capacity? Once you prove to creditors that you are the responsible credit card holder, your credit card limits will automatically increase. Even if the business doesn’t increase your credit limit, you have the option to apply for it. It is impossible for your credit company to not comply with your request. However, it is imperative to keep in mind that the relationship between your available credit and what you have used plays an important role in determining your credit score. Also, getting higher credit limits will add a few more points to your higher score.

2. Owner approvals

Today, property owners use your credit score to determine whether they will rent out their houses or apartments to you. The better your score, the more confidence they will have in allowing you to rent. This is mainly because; they tend to believe that they are more likely to pay on time. With good credit, getting approval from homeowners becomes a lot easier.

3. Reduced interest rates

Interest rates have seen a spectacular increase in recent years. This can be largely attributed to the tough economic times the world is going through. However, with a high credit score, you have the opportunity to have your interest rates lowered every time you apply for a car loan, a home loan, or any other type of loan. With a timely loan repayment history, lenders will consider you a safe bet to repay the loan. This is a great way to save money. How? One can ask. Even a 1% decrease in interest on a 25-year mortgage can translate into tens of thousands of savings over the life of the loan.

4. Personal matters

Apparently, your luck in love increases when you have an impressive credit score. It’s no surprise that people are researching FICO scores when researching their potential love interests. The world’s population is becoming more independent and liberated. People don’t jump into relationships just for the sake of it. They are willing to remain single rather than invest in unconstructive relationships. They want to marry partners with whom they can buy a home, cover travel expenses and even invest among many other things.

Low credit scores are interpreted as a sign of irresponsibility and poor financial management skills. Working toward a high score makes you more comfortable discussing concrete future plans with your love interest. Nothing will make you feel more secure than knowing that you have a top-notch credit score.