When you have a good credit record, life becomes easier, especially when you are looking to buy things such as a home, a car or apply for a loan. In South Africa, most credit bureaus consider a fair credit score to be from 580 to 669 while a good score is higher than 700. A good credit record comes with great benefits which include getting hustle free approval from financial lenders.
What is a credit record
A credit record, it’s a report with all your financial information, it evaluates how poorly or good does a person pays their bills, how much debt they carry and how their credit records compared to other borrowers. We live in times where a good credit record is of utmost importance.
When you take care of your credit record, you stand a better chance to receive lower interest rates on credit cards and loans, unlike someone who is considered high risk due to a poor credit record. If you are looking to increase your credit card limit it will also be easy for you to get approval for higher limits when you have a good credit record.
What are the benefits of a credit record
Other benefits include easier approval on a rental home/apartment, the lower car insurance rates for the car owners, applying for a personal loan, as well as getting a cellphone contract to become a hustle free but most importantly you get negotiating power, meaning you can always negotiate for better deals.
No financial lender, be it the bank can approve a financial application from a person who is considered high risk by the credit bureaus since that person does not have any credit history that proves their ability to pay their credit or someone with a debited history.
A credit history determines the type of interest rate that you’ll be offered when you are paying back the money you borrowed. Basically, this means, the healthier your credit history, the better the interest rate you’ll be offered.
To enjoy the benefits of having a good credit record, you should apply for a credit card or loan with your current bank with whom you are already banking with or you can get a retail credit card, such as an account with a clothing store. If you already have a credit card you can increase the credit limit, ensure you keep a healthy unsecured and secured credit. More so, to ensure that you pay your credits/bill on time.