Applying for loans whether personal loans, payday loans or whatever kind, demand several qualifications for you to get approved and lent. It’s money, so it’s normal that loan lenders are careful with whom they help and with whom they do business with. One of their requirements is a good credit score. It shows your history of borrowing and repaying which lets the lender determine whether you’re a good payer or not.
Having a good credit score is not only for the benefit of the loan lenders but most especially for your own good as a borrower. It helps you in many ways as you apply for loans. Here are 5 good things you get if you have a good credit score:
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1 – INTEREST RATES ARE LOWER.
When you deposit money in banks, they pay you interest rates for putting your money there. When you apply for personal loans from a loan lender, they charge you with interest rates for what you borrow since their money is in your hands by the time they lend you so.
Your credit score is linked to interest rates that’s why it highly influences whatever interest rate the loan lenders will assign to you. A good credit score is a sweet scent, so as a form of trust and also a reward, that you’ll most likely get approved for low interest rates and low charges on loans. You can save money and use them for other important expenses and repayments.
If you have a previous account of a delayed repayment or several bills, the lender will offer a high interest rate since they’re not so certain about your repayment attitude and ability by the time you apply to them. On the other hand, if you have outstanding records of repayment, lenders will offer a low interest rate because they see you as a trustworthy borrower.
2 – APPROVAL IS AROUND THE CORNER.
Taking out personal loans and other kinds of loans is not easy because it’s not like a pen you can just borrow from the bank teller while you’re filling out a bank form. Here, you need to get approved after your records and documents have been checked and scrutinized.
A good credit score does not immediately equate to an instant approval of your personal loan application, but it surely is a great edge. Loan lenders will check if you have passed and qualified for the rest of the requirements as well such as a current stable source of income. If you have a good credit score, it will be easier both for you and the lender to do business and help each other.
3 – DISCUSSING TERMS IS MORE POSSIBLE FOR YOU.
With a good credit score, it means you did well during your past money borrowings. There’s nothing to be shy or embarrassed about to the point that you feel you have to please the lender so much to let you borrow money.
A good credit score is like a special tool you can use so you can take greater advantage of perks for good payers. You have a negotiating power because you’ve done nothing wrong during your past transactions which means you’ve shown yourself with a good reputation.
Of course you should be polite and not arrogant because in the end, you’re still the one who’s needy between you and the lender. You can nicely ask for a lower interest rate and other markdown offers which they might not be disclosing if you don’t inquire. Also, you can mention how other loan lending companies treated you well because you are a trusted and good paying client.
4 – GOOD SCORE, GOOD AMOUNT.
Loans such as personal loans put into primary consideration that you have a stable job with sufficient income when it comes to approving applications. The amount of money they let you borrow is based on the salary you get.
Not just that, your credit score also affects it. The limits of your borrowing capacity is expanded because they see how punctual and responsible you were for your past loan borrowings. It’s like you get a good prize from your mom if you get a good score on your quiz.
5 – THERE’S NOTHING MUCH TO WORRY ABOUT.
You are more confident when you did great before with something you’re about to do now. A good credit score proves that you have a good name and good paying hands. You don’t have to worry of getting rejected of your loan application. Even when borrowing money is not the best thing to do, you feel confident about it because even when you’re in need, you’re on time when it’s paying back time.
GOOD FOR GOOD
Good things await those who achieve and maintain a good credit score. It’s always advantageous. It brings you to the best chances, opportunities and offers as well. Aim for a good credit score always because you get not just the money you’re borrowing but also other good things it has in store for you.
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