Role of Real credit score in overall financial decisions!

At some point of time, we all have received sales call, at least once, briefing about pre-approved loans and credit card offers based on our real credit score. So, you see how important and vital it is to maintain good credit scores to ensure healthy financial management. Creditors are more interested in getting individuals on board who have a good credit standing and have proved to manage the finances quite well over the past years.

Your credit score determines a lot more than your bank balance and in fact, gives you power to negotiate on certain loan terms such as rate of interest and loan tenure. Hence, in order to get the best loan deals, you certainly cannot avoid your real credit score. Moreover, the benefits are not just limited to the loans, as your scores also play a major role in other segments such as insurance premiums, securing a job, and getting a house.

Insurance premiums:

Whether you’re buying two-wheeler insurance or personal health insurance plan, your insurer would always be curious to know about your financial standing to determine what amount of premiums you would be able to pay on time. Therefore, this is the reason why most of the insurers today pull an applicant’s credit report before zeroing down on the premium rates and sum assured value. A poor credit score could cost you higher premiums each year, while an excellent score could help you save hundreds of dollars from paying additional premiums.

Securing a job:

As people are getting more and more aware in terms of finances, an increasingly common and somewhat controversial practice of checking credit report of new prospective employees is also taking place at several companies. While this is a hot topic of debate as many would agree with the idea; others feel that a person’s financial standing is his/her personal thing and an employer shouldn’t interfere in it. Well, no matter what you feel, many employers do check for an employee’s credit score to determine the level of financial responsibility and how trustworthy they are to handover company’s accounting details.

Home tenants:

Yes, with the growing bluffing cases, many house-owners nowadays prefer pulling real credit score of a new tenant to ensure that would pay the house rent on time and have a good financial standing so far. However, the concept is primarily popular in metro cities, but II-tier cities are too heading towards checking the scores.

Hence, it is no doubt to say that the effects of credit score are not just limited to borrowing a new loan or a credit card, but is effective in other significant segments as well.