CIBI News

3 Reasons Why Having a Good Credit is Important

Know these useful tips and critical points to maintain a healthy credit history for your future financial goals.

Make it a habit to have your credit health checked! If you are new to your job or has plans on applying for a loan, getting started and opening your minds to the importance of credit reports are crucial in fulfilling your financial goals in the future. Whether it’s for the purpose of getting your dream house or opening a business you have always dreamed of, knowing these things are worth your time when your future is at stake!

  1. Loans Require Good Credit
    It pays to know how good or bad your credit standing is at any given time. Lenders specifically look for borrowers with good credit standing since it may result to higher chances of finishing off a debt rather than go with a loan requestor that may default over time. Credit card providers also see this as a factor in terms of extending credit limit to those who aspire to own a credit card in the future. Building a good credit standing is required as early as now to ensure that your future loan application will be a success. On top of this, having a good credit also allows creditors to have more room to provide additional loan product offers to qualified borrowers with existing loans.
  2. Negotiating Space for Lower Interest Rate
    The smartest financial move anyone can make is to maintain a good credit history. By paying your bills on time, you are not just removing your present burden but also helping your future self with lower interest rate on your next loan. Lenders like to see good paying habits in your credit history as this gives them some assurance that the account won’t turn sour. A good credit history gives borrowers an option to bargain or ask for a lower interest rate especially for loan renewal requests. If you have plans on upgrading your car or buying your dream house, now is the best time to practice good credit habits.
  3. Higher chances of credit and loan approval
    The credit approval process varies depending on several factors as creditors use different models to evaluate a request before coming up with an answer. One thing remains solid, if you have a good credit standing then there’s a higher chance you’ll get approved and claim your cards and check. With compliance and credit officers running through your papers, the first thing they will check is if you have an outstanding loan or balance with another provider. Most of the time, creditors take more time in validating this and would wait for the provider’s feedback on your account. If they find you have a bad account with another provider, your application will receive outright disapproval. Now if you have a good standing, they’ll definitely move your papers to the approved list.
Tags: CIBI News

Related Articles

Menu