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Credit score  – It is not just another number. It is the mark by which your creditworthiness is calculated and the lenders refer to it while giving you  loans  or a  credit card , for that matter. You might get away with a  poor credit score  and receive all these credits, however, it is sure not going to be affordable and easy. Financially, things will be a lot easier for you if you establish and  maintain good credit .  Credit Bazaar  gives you the various reasons for which a  credit score  is important, explained below:


1. GOOD FINANCIAL DEALS ARE YOURS! It goes without saying that you have free access to better financial opportunities and deals when you have a  good credit score . You may receive various extravagances such as investment accounts, ability to refinance your home with a lower rate of interest, access to better rewards on  credit cards  with a lower rate of interest, being offered checking accounts,  credit cards  with signing bonuses, and so on. When you have open access to such remarkable financial deals, you will be better able to manage your resources in the long run.  


2. EMPLOYERS TRUST YOU MORE Checking the credit of potential new employees is becoming a rather common but controversial exercise these days. Employers want to be well-aware of the credit practices of their staff, being vigilant that they are not involved in any illegal practices. The prime reason actually for doing this according to the employers is that they want to understand how responsible are the employees. If they are responsible in reference to their credit behavior, they are assumed to be responsible regarding the various errands concerning their jobs. Evidently, there might be certain circumstances where a bad  credit history  might be due to something that is not in the control of the individual, in particular, however, it is something to be pondered for the employer.


3. BORROW MONEY EASILY There is a high possibility that you might have to borrow money at any point in your life. Any uncertain situation can pop-up and you could be short of money. In an event where you want to buy a house, you might have to take a mortgage loan. You might also want to borrow for buying a car. If you have a  good credit score , there is a lot of money you can save over the period of a  loan . For instance, you may get a good interest rate on a mortgage with a  high credit score  in relation to a  low credit score . The same principle is applicable when you borrow a personal, education, or a car loan. Whenever you decide to borrow money, the  higher your credit score  the more money you can save. Remember that the  credit score  that you see might be different than that your lender sees, based on the  credit reporting bureau  your lender uses to know your scores.


4. IMPACTS YOUR INSURANCE PREMIUMS In some states it is not allowed for insurers to use your  credit score  for setting up insurance premiums, however, some states do allow the insurer to practice this behavior. You could also end up paying a higher coverage every month if your  credit score  is found to be too low. On the other hand, if you have a  high credit score  and ideal creditworthiness, then you could save a lot of money on your insurance premiums a lifetime. Moreover, this could also  increase your credit score  further.


5. WANT TO SIGN UP FOR INTERNET OR CABLE? GET BETTER TERMS AND CONDITIONS Many TV, cellphone phone, and internet service providers now want to  know your credit score  prior to setting you up with their service. There are chances that you might be denied an account for some particular situations if your  credit score is too low . You might be even asked to pay a security deposit or pay for some part of your service upfront even if you are not denied service directly. This can be extremely costly and frustrating for a person because it can restrain your budget and also change your monthly cash flow too .


6. CREDIT HEALTH AWARENESS By  reviewing your credit report , you can get to know how financially healthy you are at the moment. The  credit report  represents your credit score, the debt amount, how well do you stand with respect to repaying  credit card  dues and loan EMIs, how often have you  applied for a credit card  or a  loan  in the past and various such factors. Being aware of your  credit health  through regular check-ups helps you to take preventive and corrective measures.


7. LAND AN APPARTMENT EASILY NOW, WHETHER PURCHASED OR RENTED! Better opportunities for housing will be available to you  when you have a good credit score , this is applicable when renting or purchasing a property. If your  credit is good , the home mortgage lenders are more probable to approve a loan. Moreover, even the amount that will be approved might be higher. The higher the amount of money that you can borrow for a mortgage, the better is the home you can purchase and similar goes for rental properties. Especially, the landlords that manage and deal in large communities offering access to numerous amenities, generally check the credit history of the renters. By taking a good look at your  credit score , a landlord would want to know your financial trustworthiness just like any potential lender.


They must be aware that you are responsible for your  credit behavior  and are going to pay your rental charges timely every month. This insight is very important from the landlord’s point of view as they will be relaxed that the renter is reliable for making well-timed payments. Similar to lenders, property owners also want to make sure that they are renting out to individuals who will live up to their financial responsibilities such as paying the rent on time. It all depends on your credit if it is in good standing, your rental application more probably will be approved for communities that offer more amenities and located in preferred areas. On the other hand, you may not be in a position to borrow as many funds for a  home loan  if you have a poor credit history. Less the finances, lesser is the choice for real estate purchases. Similar to that, you might not be open to the rentals that may not meet your preferences necessarily. You might have to go for something that is not up to the mark, in some shabby area or without any good amenities. Because of such a shortage of choices, you might not get an area as per your fondness and might have to settle for any mediocre option.


8. HIGHER AMOUNTS OF LOAN AND EXTENDED CREDIT LIMITS With a  good credit score , your scope for benefits is unlimited. Not only your chances of being approved for lines of credit and  loans  are approved, but it will also give you good access to higher amounts of funds. The amount of funds that can be borrowed by you is based on these two prime factors: your credit history and income. The  credit card companies  and lenders are going to chase you and are more likely to give you higher credit amounts and loans if your credit history is healthy. This is because a  good credit history  indicates to the  credit card companies  and banks that you can responsibly manage the money you borrow. Hence, you may be able to get more funds for a car loan, a credit card, or a mortgage when you have good credit.


9. HIGHER FINANCIAL OPPORTUNITIES: You will automatically have access to many more financial opportunities if your credit score is good.  Credit card companies  and financial institutions want to make sure that they are working along with consumers that have stability, those who have been paying their debts back to back in a well-timed manner. There is a higher possibility that you will be approved for lines of credit or loans if your  credit score  and credit history is good. Whereas if your  credit score  and credit history shows a not-so-good debt management record, your chances of being approved for  credit cards  and  loans  is lowered. As a matter of fact, you may be completely denied based on your score and history.


10. GET THE LATEST CELLPHONE WITHOUT ANY DEPOSIT! You might not get a contract from the cell phone service if you have a  bad credit score . You might just have to settle with their regular pay-as-you-go plans that offer more expensive phones. Accept that you have to establish trust with the provider by paying extra that is mentioned in the contract. On the other hand, people who have a  high credit score  can even evade paying the security deposit altogether. Moreover, by just signing a contract, they may receive the best discounts on the latest mobile phones. This applies in the case of any utility provider as to when your  credit is poor , you may have to pay the security deposit for any service that you opt for. The utility providers may be of many kinds such as cable, cell phone, electric, and internet companies who check the customers’   credit history  for the purpose of determining whether or not they will make their payments timely. The deposits that are taken by the customers have an assuring effect for the utility companies. The companies are now relaxed as they have access to reserves of funds in a situation where the customer misses payments or fails to make timely payments altogether.  


11. NEGOTIATE YOUR WAY TO LOW-INTEREST RATES! When you have a  good credit score , you can proudly bargain for a lower rate of interest with the banks and other financial institutions, while applying for a new  loan  or  credit card . If that’s not enough for you and you want to further increase your bargaining power, then you can take benefit of the other attractive deals that you have received from other companies because of your  high credit score . On the other hand, if you do not have a  good credit score , then the  creditors  will push you to follow their loan terms, which could be even more severe. In such situations, you will not even have other credit options, deals or offers. For instance, you spend way less on the mortgage when your  credit score  is in the “very good” range, as compared to a person whose credit score is in the “fair” range. Furthermore, even if you are going for an auto loan, you will have to pay really less comparatively. A significant amount of funds can be saved in interest with good credit and  lower interest rates  are very advantageous in the long run. As when you actually sit and calculate, a lot of interest amount accumulatively is given, which can be proportionately saved. 


12. LAST, BUT NOT THE LEAST, A CHANCE TO BRAG! The  importance of a good credit score  is a lot and the perks you enjoy because of it, can benefit you a lot in the long run. Apart from that, a  high credit score  is something to be proud of and that you can brag about. This is particularly when you have worked very hard and diligently towards  moving your credit score from bad to good . Also, if you are relaxed thinking that  my credit score  was never bad, still do whatever you are already doing meticulously for  maintaining a good credit score  because even a few missed payments can get you off track very easily. Keep checking your  credit score online  every few months to be in the loop.


 CONCLUSION:          You will be able to survive a not-so-good credit situation, however, it will not always be cheap and easy in any case if your  credit score  is bad. The credit score is a very significant and important factor for seeking numerous benefits in the long run. A  high credit score  can make your  financial life  a lot easier and can help you to save a lot of money.  Credit Bazaar   has mentioned the importance of  credit score  above in detail and provides you various services relating to  insurance premiums, credit cards, personal loans, Corporate Health plans, Mutual Funds, Bazaar Improvement Plans,  and so on . For any queries regarding Credit Score improvement or Loan contact  Credit Bazaar  CR Arcade 2nd Floor, Opposite Delta Garden, Next to Shree Mahalaxmi Restaurant, Mira Road East, Thane: 401107