subject: Strive To Get Good Credit Scores [print this page] There are a lot of adverse consequences with having low credit scores. A person rated poorly is likely to have difficulty tapping a bank loan and may find it hard to engage in other commercial transactions. Striving to get good credit scores is, therefore, indispensable.
It pays for an individual to be conscious about the evaluation made on him by the so-called credit bureaus. There are people who pay monthly bills way ahead of the due dates and settle debts promptly to improve their standings.
However, an increase in one's grades does not happen overnight. Settling obligations today does not mean an improvement of a person's ratings tomorrow. Usually, it takes a while before settlement of liabilities is reflected on one's scores. In some instances, it takes years before an improved payment habit is mirrored in an individual's standing.
Despite this, a person must not give up on his ratings. The saying "patience is a virtue" indeed applies even to the goal of improving one's grades assigned by evaluators to an individual.
Some people may be discouraged by the delayed reflection of improved payment habits on their ratings. As a result, they become delinquent in their financial obligations, allowing interests on their debts to bloat.
Nobody gains from dereliction from financial responsibilities. Besides swelling of debts arising from increasing interests, failure to pay obligations on time will only worsen a person's standing.
Although these evaluations take time to improve, it is much quicker for these to deteriorate once a bank or any company reports to an evaluator about a person's loan delinquency.
Deterioration in one's evaluation is a turn-off for many banks and other concerned entities. One might not be able to get his planned housing loan or automobile loan if he is poorly rated. A job seeker may find it more difficult to find an employer if his ratings are low. This is because many employers take into account the applicants' payment history in deciding whether to hire them or not.
Some employers believe that one's payment history is a reflection of his sense of responsibility. Those with less favorable evaluations are, therefore, perceived to be less responsible than those with impressive grades.
Someone with a weak evaluation may even have a harder time applying for utility services. This is because companies may be reluctant providing service to people who are known to be delinquent in paying monthly bills.
Given this, working hard to improve one's grades, even if its benefits are not immediately felt, should always be a person's objective.
