Everywhere we hear that we must pay debts on time and even make advance payments, all to maintain a good credit history. But what is the credit history and why do we have to “keep it in good condition”?
Credit history is your cover letter to financial institutions. Here you can see how many credits you have requested in the past, how many cards you have and how good a payer you are; that is, if you are late, your credit history will not be as good, which could cause you to be considered a risky customer.
Now, should you have a good track record? The answer is yes and the explanation is summed up in three reasons:
Credit is approved easily
By having a good track record, you prove that you are a reliable customer, to whom you can lend money without distrust. If you paid on time for your first loan, when you apply for a larger one or even the financing of a car or house, you are more likely to have the procedure approved.
Get better interest rates. As a kind of prize for taking care of your financial reputation, financial institutions grant better interest rates to “good customers”, in this way, you will end up saving. You can even access other benefits besides the fees. Everything will depend on the entity you choose.
Best qualification in a job
In some companies an important point to access the position you are applying for is your history, as it shows how much control you have of your finances. Even, in some cases it is a requirement to rent a property.
It is worth cultivating good financial habits and the benefits you can access, prove it. If you think your record is good and you need extra money, don’t forget to compare the options before applying for a personal loan, so you can choose wisely.