A good credit report plays an important role in your life but it takes a good credit card to get a good credit report. Just getting a good credit card and holding onto it for might not give you a good credit report. You might think you are being conservative by not using your good credit card to spend money just to improve your credit report but the credit bureaus will need to see continuous usage and early payment before issuing a good credit report.
As your build a good credit report, you are influencing a key component of your future that will affect your job, where you live and also the phone you use. Lenders and credit card companies are not the only ones that check to know if you have a good credit report when making decisions, but a lot of people do not understand the effect of a good credit report until it begins to limit them.
A good credit report can have a great impact in the following scenario:
While Applying for a new job:
A hiring manger will want to check if the applicant has good credit report for reliability and security reasons. This is because a good credit report will reveal so much data; they could also be used to verify an applicant’s name, address and proviso employer. The financial insight that can be gotten from a good credit report could be very valuable to employers filling positions that will involve handling finance or requires security clearance.
Electricity, water, internet and heat are all necessities but the companies will need assurance that the consumer has a good credit report before providing them. For a consumer that has been using a good credit card and has a good credit report, the company will not request for deposit when starting the service. They will be certain of an on-time payment due to your credit history.
Getting a house:
It is widely assumed that a good credit report is not important while renting a home as opposed to paying mortgage. but a good credit report is an integral part of the tenant screening process which a lot of people overlook. It is quite challenging when trying to get an affordable place to live but will be worst if a bad credit report will prevent the tenant from getting the house.
It is said that a good credit report is an important part of almost every facet of our lives. This often starts with having a good credit card and determining the monthly payment amount which is required to pay off your credit card. This will enable you have a good credit report while allowing you avoid expensive interest charges.