Credit ratings have become extremely important over the years. While you used to be able to get along just fine without one, these days you need good credit for everything from your finances to your career.
So, why is having a good credit rating important and how could it help your financial future? Here, you’ll discover just some of the reasons a good credit rating matters in your life.
Increasing your chances of getting credit
Although it is possible to get credit with a bad credit rating, it’s certainly not advisable. This is because the rates for bad credit can be substantially high. You’re also a lot more likely to get turned down for a loan or mortgage if your credit rating is poor.
If your credit rating is good on the other hand, you’ll have access to whatever credit you may need in the future. Loan providers such as Ocean Finance won’t see you as a high-risk lender, making it much more likely you’ll be accepted. You’ll be able to benefit from much lower interest, making monthly repayments a lot more affordable than they would be with bad credit.
If you were to apply for a loan with a good credit rating, you could benefit from an interest rate as low as 3.5% for example. If you were to apply for the same loan with a fair rating, the interest could jump to as much as 31.9%. If you have a poor credit rating, the interest would be even higher. This shows just how much of an impact a good score could have on your financial future.
Helping you progress in your career
It’s not just your finances which a good credit rating can help with. Depending upon which industry you want to work in, it can also impact your career choices. Research has shown that up to 47% of employers carry out credit checks on their employees. So, if your rating is poor, it could see you turned down for a potential job application.
These are just some of the benefits having a good credit score can provide. Your credit rating can impact everything from your personal finances, to your career and even your chances of renting. So, if your rating could be a little better, now’s the time to start working on it if you want to protect your future.