subject: Importance of a Good Credit Score [print this page] Importance of a Good Credit Score Importance of a Good Credit Score
The credit score of a consumer is a good indication of his financial standing with the bank. The credit ranking or score is based on different the different financial factors and situations being faced by the consumer. The banks would consider the amount of money stored in the bank account, outstanding loans and mortgages and payment habits of the consumer. People who have substantial money in the bank would be given a high rank since they are financially secure. Timely payments would also increase the rank of the person. Obtaining a high credit ranking or score is very important since it provides a lot of benefits and advantages. Banks would approve any loan, mortgage or lending program requested by consumers with a high rank. This is because the ranking would reflect the capability of the consumer to conform to the rules and regulations established by the bank.
The credit score can be enhanced through different means. The best and most reliable way is through the advance payment options. The bank can establish a payment program which allows the consumers to pay the money needed in advance. This has lots of benefits if the consumer is able to fulfill the requirements. The interest rates would be lowered and the credit score would be restored. Collateral payment options can also be used in order to improve the standing of the person with the bank. Any viable property with substantial worth can be surrendered to the bank in case the person has no money to pay the debt. House and lots, jewelries and even cars can be given. The collateral program has been created to help people who have been fired and laid off. They would have no income and source of money to repay the bank. In this way, they can acquire the needed credit ranking and score. All the penalties and legal problems can be avoided.
The credit score of a person is more than a number or ranking. It serves as an indicator of one's financial capabilities. The person and consumer should be responsible enough to maintain a balanced and positive credit rating.
