The real need to keep a good credit score

31-May-2015 written by : FSI-Team

Credit Score

Credit score is calculated on the basis of the debts that you pay, how long you take to pay them, how long do you take to pay off your loans, is there any credit that you are still to pay off, how often do you keep your bills pending. All these smaller and bigger things are combined together to rank you with a score which can range from anywhere between 0 to 1000. This is your credit score. Before giving you any debt, the debtor or bank for that matter tends to check out your credit score. This credit score actually determines your financial trustworthiness. Based on these scores they further decide whether it is safe to provide you with credit or not.

So, if you still wonder that what are the needs to keep your credit score? Well, we have answers straight away –

  • 1. It matters everywhere – Whether you are looking for job or a home loan. Your financial position with respect to your debts and payments is mostly considered almost at every point of your life. Being a low scorer on it somehow hampers your image too.
  • 2. Retirement plans – If you are planning your retirement or will be planning in five years down the line, your credit scores has to be good. This is because you wouldn’t like being fed up of paying back your debts after retirement and spending all your savings on it. Instead, isn’t it better to keep your credit score good and have a peaceful retirement?
  • 3. College fees – We all are aware of educational institute fees that are touching heights. The only option left in front of a student is to take an educational loan. Here also, if your or your guarantor’s credit scores are not good enough, you won’t be eligible for any educational loan.
  • 4. Buying a car – If you desire to buy a car well then you got to keep your scores pretty high to get a car loan. With good credit scores you can enjoy good rates plus you can buy any car of your choice. Whereas, there could be many “ifs” and “buts” involved if your scores are lower than an acceptable range.
  • 5. Home – Each one us plan to buy a home at some point of life and with a better credit score you are allowed to enjoy better interest rates and flexibility In monthly payments which otherwise you may not be eligible for at all.

It is highly advisable to keep your scores good enough otherwise you might face hurdles in almost all the walks of life. Be it a new house, car, job or the survival of your family, a bad credit score can definitely create unbeatable obstacles hampering the smoothness of your achievement. Thus, check your score today and act upon it on every possible way.



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