Importance of a good credit score.


Importance of a good credit score.

There are several reasons, why you need to have an excellent credit score or at least above average score.Every financial decision of yours will be recorded in your credit history. So, even one wrong move can cost you dearly.

Credit rating is the evaluation of the timely repayment ability of an individual. This is based on credit history, present financial position, and future income. Every lender goes through the credit rating of the borrower before offering the loan; this helps them analyze how much of a risk it is, to lend the money to that borrower.

Lenders on Pikavippikone can offer loans to individuals with both good credit score and bad credit score, terms and conditions will apply.

The reasons why you should have good credit score-
*One main criterion that banks and loan lenders will look for while granting a loan is, your Credit score.
*High credit scores will help you get loans at low-interest rates.
* With good credit scores, you will be given access to higher credit limits on both loans and credit cards.
*Good credit scores will help you fetch a credit card easily.An average credit score of the applicant is required by the banks, to issue a credit card to that applicant.

What can lower your credit score?

1.Delay in paying credit card bills or loan installments can damage your credit score; however, you will be given one or two chances.
2.Using too many credit cards can lower your credit score; more credit cards means more spending. This will make the lenders think that you will be unable to pay your debts.
3.Having a short credit history can lower your credit score.

We know, you have worked really hard to earn a respectable credit score. Let your silly mistakes not ruin it.