When you apply for a loan, the bank tells you the down payment you have to make. This down payment varies from individual to individual. Why? Because of each person’s credit score. You also get to read about various finance schemes where only 10 per cent down payment is needed. But upon approaching the financier, you only get 60-70 per cent coverage offer. Again, because of your credit score. In essence, your credit score is important. It tells the bank how credit worthy you are. However, maintaining a good credit score is important for the advantages it offers you. Read on to know the good credit score benefits you can avail:
Good Credit Score Benefits
Best Loan offers
Many people feel not having a loan is equal to a good credit score. However, when you do not have a loan, you have a zero credit score. Hence, banks treat you as a risky proposition. Due to this reason, the loans you will get will come with higher interest rates than usual. Your zero credit score will also tie you to stringent terms and conditions. However, having a good credit score means you don’t have to worry about paying more interest. Processing costs also come down as a result as well as relaxed terms and conditions.
Pre-approved Loans and Cards
Among the good credit score benefits comes the chances of bagging pre-approved loans and credit cards. Almost every bank offers such schemes to prospective clients. However, they approach the guys with a good credit score first. From there the list keeps narrowing down. Having a zero credit score means slim chance of a bank offering a pre-approved loan or credit card.
Premium Credit Cards
A lot of us think we don’t need credit cards. However, there comes a time when we think about getting one. The problem with that is this – most of us end up liking a premium credit card. Such cards offer benefits such as an attractive reward points program and nice EMI offers on your purchases. As soon as we contact the issuing bank, the representative tells us we cannot get the premium card. Having a zero or a bad credit score is the biggest reason why you don’t get that credit card. In the end, great services are offered by a bank to those with a good credit score.
Good Credit Score Benefits: Conclusion
These are three biggest good credit score benefits. Having a good credit score works in your favour as it helps in case of any future loan requirements. Your requirements change over time and hence, being prepared for them is your best bet. In case of loans and credit cards, there is nothing better than a good credit score. In case you wish to know your credit score, CIBIL provides services in this regard. Start working towards a good credit score today to avail benefits tomorrow.