5 Lessons Learned: Finances

23 Aug

5 Lessons Learned: Finances

Reasons to Check Your Credit Score

when you have a poor credit score, you will experience some of the negative effects. Abilities to borrow money in the near future call be affected by a poor credit score even if it took place some time back, missed payments, and overspending on credit limits will have a lasting effect on taking out a phone contract, signing up for a another credit card or even applying for a loan. There are several advantages of looking after your credit score and making sure that it stays at a good level. Let us explore.

1. Paying for a house.
There are chances that you will one day hope to own a property of your own if you are currently renting your home. There is freedom when it comes to beautifying your home and constructing extension when owning your home, and they are worth a lot of money which can be sold or even passed down to your siblings as inheritance. Trying to get on the property market with a poor credit score is going to be very difficult for you. It is very impossible for you to get a loan with bad credit because lenders will view lending to you as a risk.

2. Job opportunities.
A bad credit scores affect other things apart from your ability to get loans. People with a bad credit score are likely to get turned down for employment positions that they would have perfectly fitted with a good credit score. For instance, if you want to work in within the finance industry, it is impossible for you to be hired by a bank of any financial institution if you have a low credit score.

3. Acquiring the Necessary Funds.
No one would want to be in a situation whereby they need to borrow money, but sometimes it may be the only option. If you’re in such a state where you need some quick cash, your capability to apply for a quick loan or even take out your credit card will come in handy. If you have a low credit score, you may be at a higher risk of your loan application getting dropped especially at a time when you need to borrow funds.

4. Attaining a Trade Loan
Because entrepreneurship is now within reach more than ever, more and more investors are starting their own trades. However, if you have a poor credit score, and you need to start your own business, then you are in a riskier position of not getting the needed funds to kick start your company. Although you may still have other options such as angel investors or crowdfunding, the first source of funds for most investors is through a bank loan. Despite the funds being for commercial use only, your personal credit history will be taken into consideration.