A credit score is like a school grade that says a lot about the person who owns the bank account. A high credit score translates to multiple benefits and opportunities for a lifetime.
Got a High Credit Score? What Can You Do with It? If you are curious about what you can do with your credit score, we’ve listed five things you could try to do.
Negotiate Lower Interest Rates
Financial institutions will likely base their interest rates on the account holder’s credit score. So it stands to reason that the higher your score, the better deals you can negotiate. But why? Your credit score is a good indicator if you are a risk. Like we said earlier, it’s like a school grade that goes up with better performance. In this context, paying your loans on time will yield you a higher score.
Raise Your Credit Limits
The ability to show you can pay on time will make the bank more willing to entrust you with a higher loan look here, provided your salary is enough. Your credit score will reflect on your history, and banks are always going to look at this. Remember to always pay on time to prove that you can take responsibility.
You Can Get Better Credit Cards
The ability to prove you can pay back on time will also open more opportunities for you. You can obtain credit cards with better perks than what you have currently. Perks such as higher credit limits will now allow you to borrow more money.
Shorten Your Loan Terms
Annual rates are usually high, specifically for those with a low credit score. You could say this is done on purpose to deter unproven clients from overspending. But as soon as a bank account holder is scoring high, they can call up their card issuer and ask if they are eligible for shorter loan terms like this. The client is moved to a different tier as soon as the credit score earns enough points. Of course, these tiers can differ from bank to bank. Going back to the school grade analogy, the top-ranking students are on the priority list of hiring companies themselves. The same idea applies here. If your credit score is high enough, your status will put you on the radar of some big financial institutions.
Refinance with Ease
If you need some refinancing, that high credit score will come in handy as it is usually the basis for getting approved. In the case of car insurance, the insurer will base their rates on the applicant’s credit score. A poor credit rating will often lead to equally bad rates at the end because they will assess how much of a risk a client is. That credit score pretty much tells them everything they need to know about you. So keeping that score up is crucial for enrolling in insurance premiums. The same story goes for home insurance premiums.
Rent Apartments or Houses with Ease
If you think only companies used credit score to judge their client’s risk factor. Landlords can also use that precious number to check if a client is responsible for their finances. Does a client have a low credit score? Why? Was it from eviction or unpaid rent? Does a client have a good credit score? For how long was the client able to keep it this good? Did the history start bad then turned good? The answers to these questions will cause any landlord to think twice, or not at all when deciding about whether they should accept a tenant or not.
Get a Quick Loan without Any Problems
Keeping a score can often be difficult, especially today. Not everyone also has a bank account. Some people are just living from meal to meal every day. But bills are inevitable, and emergencies can happen any time. So what can you do if you need a quick loan but don’t have the necessary score or collateral? You can avail of a loan from https://robocash.ph/articles/bpi-credit-card. It is an online money lending service that is available to all. They process transactions purely online so you don’t have to go to a bank to apply for a loan. If you have a good credit rating, you can easily get a loan of up to 25,000 pesos.