Importance of having a good credit card In the world today, many people are de[ending on credits card to make decisions or to buy things. Credit cards are used in many ways today apart from acquiring a loan. Many enterprises now require customers to have good credits so that they can extend services or products for them. Credit cards are used to determine where you live and the money you pay. Prior to buying a house, a lender wants to find out whether you can pay your loan back. A loan applicant who has a bad credit will make the lender lose confidence in them. If the lender proves your mortgage loan, your credit has an impact on the mortgage payment you pay monthly. A bad credit could make you have a higher monthly mortgage payment. You could even lose the chance of getting a mortgage loan due to your poor credit. Your a credit card can also be used by some landlords to determine whether they can rent you a house. They consider the lease as a loan. The landlord gives you a place to live in the form of a loan, and they want to determine whether you can manage to pay the loan back. A bad credit card can make you lose a chance to rent in some apartments.
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You credit card can determine the type of car you will drive. If you do not have enough money in cash to buy a car, you will need to take a loan. The performance of your credit card will influence the amount of loan that you will be given and the interest rate of the loan. If your credit card is showing good performance; you stand high chances of obtaining the amount of loan that you desire.
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Bad credits will limit your chances to get a higher amount of loan. The lenders who will accept to lend you some money when you have a poor credit are few, and they are likely to charge a higher interest rate. Also, poor credits can affect your job search. Some employers go through the credit card of the job applicants as part of the hiring process to see whether the applicants qualify for the job. If the credit card of the job applicant shows poor performance; this could be interpreted that the job applicant is financially irresponsible and this makes them lose an opportunity for a job. The employer might conclude that your level of debts is too high for the salary offered. Also, your credit card can determine whether you can start a business. You might require to take a loan to add on your capital. To be given a loan for the capital of business; you need to have a good credit card.