This article originally appeared on ringgitplus.com, in partnership with CTOS.
Most of us have heard that having a healthy credit score is important for our financial future – especially when you’re applying for a credit card or a loan. But how exactly can it help with your credit applications and how far can it help you in life?
Wait, What is Considered as Healthy Credit Score?
Different banks and lenders use different types of credit score, but in general, a good credit score ranges between 650 to 750. Having a credit score of between 751 to 850 (the highest score) is considered exceptionally good to most banks and lenders.
If your credit score is not within the above mentioned range, it’s never too late to change your financial habits you boost your credit score. You can start by making your bill payments on time and pay down your debt as soon as you can. If you have a credit card, keep a close watch on your credit card balances and avoid maxing it out as it may hurt your credit score.
You should also watch out for any fraudulent activity under your name. Check your credit report regularly to ensure all your personal details are correct and updated, and make sure all the recorded financial activities under your name are the ones that you have authorised.
Perhaps not many of you realise this, but having a healthy credit score can create a positive ripple effect on countless aspects of your life – far beyond getting your credit card application approved. Here’s a closer look at some of the perks and benefits of having a healthy credit score: