Credit Score Explained
There is no question that credit score has a major impact on your life, your qualify of life, your options, business opportunities and overall choices that you have in life. A good credit score provides access to a better lifestyle.
Credit score is used as a mirror reflection of you! Sometimes it does not reflect the whole story, but your credit report is evidence for whether or not you pay bills and if you pay then when they are due.
It provides lenders a record of your ability and intention to repay. Credit is the report card used which establishes your ability to get a loan from a lender, or get a credit card and your ability to repay a loan in a timely manner. Credit is also used for many other things in life from employers on job application to insurance companies determining how much to charge you for your monthly premium payments.Credit is a privilege and a convenience. It allows you to obtain things and make purchases without ready cash. You get credit by promising to pay in the future for something you receive in the present.
No matter how polite and professional the loan managers are you are being critically judged by your credit report. Just think about this simple and very basic example
Credit Score Explained
If a co-worker approached you and says please loan me twenty dollars, I’ll pay you back next payday. You are ok with this person, you don’t know them that well, but they’re a co-worker, you know you are going to see that person nearly everyday, you know when they get paid and you have it… so there is no reason to wonder much about it. So you think to yourself, why not? I’ll help them out.
But…. let’s say before you actually tell them yes and give them money, one other co-workers who overheard the conversation come up to you and say… I loaned this person twenty dollars last month and they haven’t paid me back. So what do you think about loaning the person twenty dollars now?
This is the exact same thing that happens when a potential creator is deciding whether to loan you money… and they sees a negative credit report. It is the exact same principal. Only you are not a co-worker, or someone they know, and it is usually for a whole lot more money than just twenty dollars.
