Do you think you don’t need to care for your credit score if you don’t need a loan right now? Think again. By failing to improve your credit rating, you risk losing a lot more in your life than you can imagine.
The following are 5 things that are a part of your daily life that can be affected due to a low cibil score:
- Financial Emergencies Just like many things in life, your income can be unpredictable at times. This is because salaries can be delayed, and if you are running a business, then cash flow can be affected due to changing marketing conditions. So, when you are facing a cash crunch in situations like these, then a personal loan is usually the best solution. However, if your credit score is not up to the mark, then you may not get the loan easily or you may get it but a high-interest rate which is undesirable.
- Balance Transfer Options If you use credit cards and there is a huge debt on them, then you can consider a balance transfer to make repayment easier. In balance transfer, you can transfer your existing credit card debt to another credit card that offers a lower interest rate and other advantages like cashback offers, zero annual fees, etc. However, to enjoy this facility you must have a high credit score.
- Your Love Life You may find it surprising, but your credit score affects your love life and married life too. For instance, if your partner has a good cibil score but you have a low cibil score, then it means that your relationship can face different kinds of challenges. The reasoning behind has to do with the connection between a person’s credit score and their personality. Someone who has a high credit score is usually a responsible person who is capable of managing their money and time properly. They are also less likely to face financial problems since they plan ahead and control their expenses. On the other hand, a person who has a poor score is someone who often pays their EMIs and bills of credit cards late. They also face problems managing their income and expenses. So, this way, two people who have a high score and a low score respectively are also unlikely to be compatible on a personal level i.e. in real life.
- Job Prospects and Career A poor credit score can hurt your career too. This is because more and more organizations have started screening their candidates based on their credit rating. In India, SBI one of the first banks to set up eligibility criteria as per which only those candidates who had never defaulted on a loan in the past were allowed to appear for the qualification exams. This trend is now growing rapidly across the country although it’s become quite prevalent overseas already. So, if you don’t want to lose some of the best job opportunities in the future, then make sure you work on your score.
- Savings With a low cibil score, you are able to save a lot less than you can with a good score. This is because not only it affects the interest rate you get on loans and credit cards, but also on premiums for auto insurance and health insurance. This is because the insurers believe that if a person has a poor score, then they must not be responsible individuals and more likely to be involved in car or bike accidents, and they may not take good care of their health too. Thus, they charge a higher premium for them.
Conclusion So, as you can see that your credit score is way more important than you think. It does not play a role just in loans and credit cards, but also in your personal life and your day-to-day activities. Thus, if you have been ignoring your credit report all this time, maybe now you should take control and start working on boosting your score so that you can live a comfortable and stress-free life. Good luck!