Do you know your credit score? If not, then it’s time to find out what it is. Your credit score affects important aspects of your financial life, including applying for home loans, buying a car, and even getting a job. While many people acknowledge the importance of a good credit score, a lot of us neglect to check or monitor our score. If you haven’t checked your credit score recently, there are several reasons why you should do so now. Find out more below.
1. To keep your credit in good shape
It can take years to build up a good credit history. So, by monitoring your credit score, you make yourself accountable for keeping your credit score at its best. The reason why it’s so important to keep your credit score in good shape is that it makes it easier for you to successfully apply for a loans and access better interest rates on loans.
Your credit rating is used by lenders to decide whether they’ll lend you money, how much they’ll lend, and at what interest rate. The higher your credit score, the more favourably lenders will view your application. An easy way to improve your credit score is paying your bills on time, meeting loan repayments on time, and paying off your credit card.
2. If you’re planning on applying for a loan
If you’re planning on buying a car or home and want to apply for a loan, you should check your credit score before meeting with your lender. Your credit report will serve as an indicator of whether a lender will approve your request or not. Lenders can disqualify you from taking out a loan if you have a history of late payments, collection accounts, a poor credit score and high balances. If you find that your credit score is less than perfect, it may be safest to work through these issues before applying for a loan.
3. To check for identity theft
Nobody ever thinks identity theft will happen to them, but with more sophisticated technology many people are becoming victims to it. The result? Your credit score could drop without your knowledge as hackers use your accounts. It could then take months to dispute fraudulent charges, having major negative impacts on your credit score. This is why it’s important to check your credit report at least once a year to ensure your credit profile remains accurate.
4. To know when you qualify for better credit card offers
With a good credit score, you have a better chance of being approved for credit cards with better interest rates, rewards and other perks. You can also use a strong credit score as a way to get your current credit card issuer to lower your interest rates.
5. Improve your chances of landing that job
Not all employers check your credit, and the ones that do only see your credit report and not your score. However, a low score can affect the quality of your report. If two candidates were going for the same job and one has a stellar credit history while the other has a bad credit history, it could make all the difference in landing or missing out on that job.
6. Reduce your car insurance premiums
Your credit score can get you a lower interest rate on a mortgage or car loan, but many people don’t realise just how much their car premiums are impacted by their credit score. There can be a major difference in the cost of car insurance premiums between a person with excellent credit and one with no credit history. So, if you monitor your credit, you’ll be surprised at how much your premiums drop as your score goes up.
How do I check my credit score?
You can check your credit rating free of charge via a number of credit reporting agencies. You can receive a free copy of your within 10 working days, but many will offer for you to receive it faster for an additional cost. Your credit report will include information about your history of opening or applying for credit cards and loans, as well as past payments and any late or missed repayments.
Get the loan you need
If you’re applying for a loan, SRG Finance can help you. At SRG Finance, you’re greeted by a real person and not a computer, and our financial experts can help you to get the funds you need even if your credit score isn’t where you’d like it to be. SRG Finance’s personal loans require you to pass a quick credit check, however our cash advances don’t. So apply for a cash advance now through our easy online portal.
