THE IMPORTANCE OF HAVING A GOOD CREDIT HISTORY

Happy Loan Corp.Uncategorized0 Comments

Widely, credit scores have been thought of as important only to get a job. However, that is far from the actual truth. A credit history is important for every big purchase that you make, from renting a house, to buying a car.
Mortgage on your House
If you are in search for a house loan, your lenders want to be assured that you will not default on your payments. A bad credit history decreases their confidence in you. Most of the time, you will not get a loan with a bad credit history. However, on the rare chance that you do, you will be subject to far higher interest rates on your mortgage, than you would have otherwise received.
Car Loan
If you have a shaky credit history, then fewer lenders will be inclined to work with you. Unless you have the money available to buy a car, you will apply for a loan. Even if you do receive a loan, the amount that you can borrow will be much less, and the interest, significantly higher. On the other hand, if you have a good credit history, you will be able to borrow much larger amounts of money, at very less interest rates.
Job Prospects
This is true especially if you are applying for an executive or a financial position. If your credit history does not demonstrate a good sense of financial responsibility, then you may be deemed as unable to manage your job. Most employers will thus be hesitant to promote you, or even hire you.

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