Credit score is a score that allows banks to make financial evaluations about you. This score examines all your financial actions before your application to the bank. These financial transactions are limited to financial transactions that can be recorded by banks. Especially if you have a credit card, your credit score will be affected if you have already received a credit.
Keeping your credit score above a certain rate is therefore very important. What will your credit score determine in the next stages? In other words, why is the credit score so important? Why don’t banks give credit to anyone without looking at their credit score? In this article you will find answers to these questions.
3 Reasons Of Importance Of Credit Score
- The first reason credit score is important is that this score shows your credibility. It is risky for the bank to give you a bank that does not know you personally. Although the bank has the right to impose sanctions if you do not pay your debt, these sanctions are limited by some laws. Therefore, banks want these sanctions to be omitted. The person who has a good credit score will make his / her payments regularly and will not require such sanctions.
- A good credit score is very important because banks can offer advantages that are high enough that your monthly income does not correspond to a sufficiently good credit score. Sometimes a good credit score becomes even more prestigious than a good monthly income.
- A good credit score will help you increase your prestige in the eyes of your competitors if you are a trader. In other words, credit score is not only your relationship with the bank but also your money flow relations in the sector you work with.