According to Investopedia, a credit score is a statistical number that evaluates one’s creditworthiness. Banks usually consider your credit score in order to estimate the risk of lending you money. Having a good credit score would determine that you are someone reliable and would pay back the debt you owe on time. In addition, maintaining a good credit score has its benefits. For instance, it improves your chances to get approval when you apply for loans and/or credit cards. In this article, we’re going to further elaborate on some of the advantages of having a good credit record.
Maintaining a good credit score not only gives you a higher chance of getting your credit card application approved – it will also grant you the chance of getting a credit with higher credit limit. If you have an excellent past credit record, it allows banks to feel more confident in you considering that you have repaid all your past loans or debt on time. This will grant you higher credit limits. Banks might offer you other benefits, including cash-back programs, better interest rates, reward points, discounts, free services and much more.
In this economy, buying a house with your savings alone is impossible. You will need a mortgage loan. Having a good credit score will repay you here. You may get priority over those with bad credit history, or better rates on your mortgage plan. Late or non-payments in your credit history might lead your application to rejection.
Interest rates have a huge impact on the price you pay for borrowing money. If you have a good credit score, chances are, you’re able to qualify or bargain for a lower interest rate loan. A comprehensive credit report also helps bankers and other financial institutes distinguish between someone who can pay their debts on time or otherwise. You may get your credit score report from Credit Bureau of Cambodia (CBC).
According to CBC, all Cambodians can visit the CBC’s office to request for their credit report for free. All you have to do is bring along a valid identity such as your national ID. You can read more about it on their website.
The best way to keep a clean credit history is by making sure that you pay your instalments, bills, and debts on time.
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