It’s not just any number, it’s your credit score, get to know it. Your credit score is an indication of your creditworthiness to lenders, and it affects the interest rate you’ll be offered on loans such as mortgages and car loans. We are in a hyperinflation environment, you need to ensure that your interest charges are as low as possible.
It also impacts your insurance premiums! Find out more in this article about what a credit score is, where to get yours, and how to improve it.
What is a Credit Score?
Your credit score is a number calculated by credit bureaus to assess your riskiness to credit providers or lenders of finance. It ranges from 100 to 1000. It is used by lenders to determine whether you are a good candidate for a loan or credit card. A good credit score means you are more likely to be approved for a loan or credit card with a low interest rate. A bad credit score means you are more likely to be denied for a loan or credit card, or you may only be approved for one with a high interest rate.
A bad credit score also means that your car and life insurance premiums are most likely higher than it should be.
There are many factors that go into your credit score, including your payment history, the amount of debt you have, and the length of your credit history.
South Africans can get their free credit score here.
What Affects Your Credit Score?
There are a few things that can affect your credit score. One is your payment history. If you have missed payments or made late payments, this will lower your score. If you do not have a credit history that is older than two years, then you most likely do not have a credit score as yet. It is recommended that you have a credit card on your name, a mobile phone contract or even an insurance policy. We can help you.
Another factor that can affect your score is the amount of debt you have. If you have a lot of debt, this will also lower your score. The last thing that can affect your score is the length of your credit history. If you have a short credit history, this will also lower your score.
Summons, judgements and other legal charges that are finance related also decrease your credit score.
Knowing your credit score is important because it can help you get approved for loans and lines of credit. It can also help you get better interest rates on those loans and lines of credit. As we enter into a hyperinflation environment, you want to make sure that your interest charges are as low possible!
So, if you’re planning on applying for any type of financial product, be sure to check your credit score first.
5 Reasons Why Do You Need to Know Your Credit Score
There are several reasons why you need to know your credit score, this articles focuses on five.
First, it can help you get approved for loans and credit cards. If you have a good credit score, you’re more likely to be approved for a loan or credit card with a lower interest rate. This can save you money over the life of the loan or credit card.
Second, your credit score can affect your insurance rates. If you have a good credit score, you’re more likely to get lower insurance rates. This is because insurers see people with good credit scores as being less of a risk.
Third, your credit score can affect your ability to rent an apartment . Many landlords check credit scores when making decisions about who to rent to or hire. If you have a good credit score, you’re more likely to be approved for an apartment.
Fourth, your credit score can give you an idea of your financial health. If your credit score is low, it could be an indication that you need to improve your financial habits. On the other hand, if your credit score is high, it’s a good indication that you’re on the right track financially.
Finally, employers also look at your credit score and credit reports. They are indicators of who you are as a person, are you diligent with meeting your obligations, do you manage your finances well…these are some of the questions that a credit score answers. Companies want to employ responsible people, and credit scores are an indication of how responsible you are about managing your finances.
Overall, there ‘s nothing you can do to affect your credit scores. If you want to improve your credit score, you must first focus on paying off any debt and then only use revolving debt.
How do You Know If You Have Good Credit or Bad Credit?
Simple. Get to know your credit score, free of charge, from us.
How Can You Improve Your Credit Scores?
There are a few simple things you can do to improve your credit score. One of the most important things is to make sure you make all of your payments on time. You should also try to keep your credit card balances low and avoid opening new accounts unless absolutely necessary.
If you have any past due accounts, you should work on paying them off as soon as possible. This will help to improve your credit score. You should also check your credit report regularly for any errors or inaccuracies. If you find any, you should dispute them immediately.
Making these small changes can have a big impact on your credit score. By improving your credit score, you can make it easier to get approved for loans and lines of credit in the future.
At Virtual Adviser, we can help you to improve your credit score. Contact us.
Conclusion
It’s important to know your credit score for a number of reasons. A good credit score can help you get approved for loans and lines of credit, get lower interest rates, and even rent an apartment. A bad credit score can make it difficult to get a loan or line of credit, and you may end up paying higher interest rates. Knowing your credit score is the first step in taking control of your finances and making sure that you’re getting the best possible terms on any loans or lines of credit that you take out.