When I got my first credit card, I was all excited with the freedom it gave me, but the the advices that kept showering on me was nothing less than a dampener I must say! Just when my spirits were soaring high I'd have people talk to me about credit scores and how to maintain good credit history. Though I did not quite enjoy listening to them then, I realize all its advantages now.
A good credit history that appears on the credit report leaves you feeling good and positive. It shows the maturity with which you are able to maintain your finances and boosts your morale.
When you maintain a good credit history, lenders will not think twice when you request for a loan. A look through your credit report will let them know just how reliable you will be replaying the loan you intend to borrow. In fact, lenders will be willing to give you a loan at lower interest rates simply because of the trust they place in you.
Any bank request will take quite some time since they will have to spend time on verifying the details furnished by you. They will also assess your credibility as a customer as they render their services to you. If you have a good credit history, you will see your requests being processed much faster by banks as a symbol of trust they place in you. A bad credit history will see requests for financial assistance being rejected by banks without a second chance. Financial maturity is what your credit report suggests when you maintain a good credit history.
Your credit history is one of the scales based on which future employers will assess you. A good credit history, to them, would mean that you are more responsible and careful in your transactions. They are sure to find you more reliable than the rest who have a bad credit history. Hence securing a job becomes so much more easier.
Once you see yourself caught in a bad credits, it becomes difficult to make ends meet. The huge interest rates will make it close to impossible for you to close the bank accounts. It may result in your opting to get your credit transferred instead, which will pave way to a vicious cycle. A good credit history will keep you at bay from any such hassles and give you tension free life with the luxury of having the credit cared for your convenience.