If you’re in need of a loan, it all begins with your credit report, which is composed of your credit profile as well as the numerical credit score. The report is what banks and other financial lending institutions use to determine the fiscal risk of extending loans to someone. Without good credit, which indicates a person or entity is not likely to default on the loan and cause the lending institution to lose the funds, getting a loan can be difficult or impossible. Often, even if you do receive a loan, if you have poor credit the interest rate will be increased, and the loan will cost you more than it otherwise would. And in today’s economy, credit risk is even considered when looking to become a renter for an apartment or home; it’s not just for credit cards and bank loans anymore.
There is a slight difference between your credit score and your credit profile. While your score is an at-a-glance measure of how risky of a debtor you’re calculated to be, the profile is a more detailed look at whether or not it could be a fiscally sound decision to offer you a loan. Modern consumers are finding just about everything they do, except perhaps pay with cash, can start and end with their credit report.
Don’t let bad credit hold you back; build it up and use it to make life better! #Ironclad
- 1Credit score is
-important in financial situations
-good demonstration of character
-crucial for success at life
- 2Landlords prefer people with a high credit score because it will reflect a food tenant who will pay their rent on time.
- 3Having a good credit score will strengthen the chances for a good loan with good interest rates.
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