Importance of having a good credit card
In the world today, many people are de(ending on credits card to make decisions or to buy things. Credit cards are used in many ways today apart from acquiring a loan. More and more businesses have a come up with the idea that customers must have good credit so that they can extend products or services for them.
A credit card determines where you live and the amount of money that you pay. Before the applicant of a loan can buy a house; the lender determines whether they can default payment of the loan. A the lender will consider giving money to a loan applicant who has a bad credit as risky. If the lender accepts to give you some loan; your credit card will also determine the money the mortgage you pay monthly. A loan applicant will be subjected to pay a higher monthly mortgage payment if they have a bad credit card. Poor the performance of the credit card would make the loan applicant miss an opportunity to be credited.
Some landlords determine whether they will rent you a house using your credit card. Landlords consider renting out the property as lease. The place you live is given yo you by the landlord as a loan, and they want to see if you can pay back that loan to them If you have bad credit, you might lack a chance to rent an apartment.
You credit card can determine the type of car you will drive. Unless you have all the money in cash, you will have to get a loan to buy a car. How you have performed on your credit card will determine whether the lender will give you some money for a loan, the amount of money they will credit you and the interest rate that you will be charged. Generally, a loan applicant with a good credit card is likely to obtain a higher loan.
You can fail to obtain the high amount of loan that you desire to have if your credit card is showing poor performance. Only few lenders can accept to give you a loan if your credit card shows poor performance, and if they do, they will charge you a higher interest rate.
Also, poor credits can affect your job search. Some employers go through the credit card of the job applicants as part of the hiring process to see whether the applicants qualify for the job. A job applicant may miss an opportunity to get employed if their credits show that they have not demonstrated financial responsibility. The employer might conclude that your level of debts is too high for the salary offered.
Also, your credit card can determine whether you can start a business. You might require to take a loan to add on your capital. To be credit for a business loan, you require having good credit card.
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