good credit scoreA credit score is a three-digit numerical number between the range of 300-850. It is an indicator of the financial health of a consumer. Financial institutions determine the credit score of a consumer on the basis of the following criteria:

A higher or good credit score indicates that the consumer is trustworthy and can be lent more credit. A lower or bad credit score of the borrower indicates a greater risk for the lender. A bad credit score means the borrower may not be able to make timely payments and may also default.

Now that we know what a credit score is, let us see why it is important to have a good credit score.

Get Loan on Low-Interest Rates

You can use this money to pay off the original loan or for other expenses. You will be eligible for receiving loans if you have a bad credit score, but on very high interest rates. Repaying those loans will cost you a fortune.

Rental Companies Prefer Tenants with High Credit Score

Rental companies prefer tenants with higher credit scores. If you have been faced with evictions or foreclosures, you need to get your credit straight now. Hiring a reliable company to repair your credit is a time and tested method to avoid the repercussions of having bad credit.

Save Money On Security Deposits

Submitting these deposits and reclaiming them when you relocate can be a huge hassle to deal with. If you have a good credit score, you will not have to go through the drill of submitting security deposits.

Enables You to Borrow More Money

Banks grant this favor to borrowers having good credit scores because their credit history reflects their creditworthiness.