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The Importance of Good Credit

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Maintaining a good credit rating is essential these days, whether you are buying a car, applying for a mortgage or even taking out a mobile phone contract. Many companies will check your credit rating before lending you money or providing services. Your credit rating gives them the reassurance that you are financially responsible.

You will need a good credit rating when applying for a mortgage, or even leasing a property. Some employers may check your credit rating before offering you a position and if you are starting your own business you will certainly need good credit when applying for a business loan. Even electricity companies, mobile phone providers and other utilities use credit ratings to check out their customers.
In fact, not having had any credit can sometimes be worse than having a small amount of debt that you have managed properly – because you are unknown quantity to these organizations. Having a credit card, and managing it properly, can therefore help you to secure a good credit rating.

Even better, get a credit card which offers an incentive, such as cash back or loyalty points every time you use it, and the companies are actually paying you to borrow money!
Most credit cards offer a balance transfer service so if you have built up debt on a higher interest credit card you can shift over the balance and pay it back with less interest. However some cards will charge for balance transfers so check the small print.

If you are interested in a credit card to gain good credit it is best to shop around, never settle on your first choice. Deciding to take on even a small amount of debt is not something anyone should take lightly. Using a service such as Cheap.co.uk Credit Card comparison, will help you find the credit card that best suits your needs.

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AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

1 Comment

  1. In my opinion a good credit score is as important as o good portfolio or retirement plan? In the long run having good credit can save tens of thousands!


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