Pawnina Shares: The  7 Wonderful Perks You Can Enjoy With Good Credit History

Pawnina Shares: The 7 Wonderful Perks You Can Enjoy With Good Credit History

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Hey guys, it’s Pawnina again! Sometimes when you want to be secure of the future, you have to look back in the past. That’s how banks foretell a borrower’s tomorrow, they check their credit history.

Okay, a credit history is like your financial background check. Yes, the financial institution has extensive connections (that you don’t have, no offense) to see whether a person is worthy for an investment.

So, they say that you don’t judge a book by it’s cover, but that doesn’t work for lenders, because a person’s loan responsibility is judged through his/her credit past. Now, check out these seven wonderful perks you can have with a good credit history and know why it’s always better to be good. After all, you don’t want your credit past to haunt you.

1) Easier loan approvals.

Planning to get a real estate loan for that condo or house, a car loan to get your dream vehicle or a business loan to finally be your own boss?

Well, better mind your past because your credit history is the single biggest factor that affects the likelihood of you getting approved for loans. Banks use your credit history to check whether you settle your balances on time or not. It is the trust scale they need to assess a borrower’s responsibility. If they find you a good credit risk and a worthy investment then they’ll approve of you.

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2) Increase in credit limit.

If you have been a faithful and responsible payer, it’s more likely the credit card issuer gives an automatic increase on your credit limit. Yes, sounds like salary increase! But patience dear, this is usually given out after 6 to 12 months.

Question: Does this mean I can spend more?

Well, you “CAN” spend more, but you “MAY” spend on your risk.

Here’s a tip: Most of the time, the chances for loan approvals is also based on your credit score. A credit score is like your grade when you apply for a university (the university being the loan in this example). What you need to do is to have a “lower credit utilization”. This means if you have Php 20,000 credit limit and you are using Php 18,000 or 90% of your credit limit, that costs you a high utilization and lowers your credit score. Use it wisely.

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3) Trust from the lending firms.

Trust is very important for banks. In fact, trust is really really important. To build this trust, you had to have good credit history! It takes time to get a straight “A” record on their list, but time and trust are the two things that you have to face when you want the lending firms to love you.

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 4) Bragging Rights!

Humility aside, you have bragging rights! Case in point, if you face problems on your postpaid bills, you all have the right to complain, especially, if the payment option is through a credit card. There’s nothing really good than knowing you are a faithful payer. It’s your right, prove them wrong.

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5) You can shop on “Zero interest” with monthly installments!

One of the best perks for having good credit history, is when you use it for shopping. For instance, if you are to shop for a new fridge or a new furniture, well, a good credit history gives you a zero interest charge in monthly installments! Oh, good heavens! That just takes away a lot of financial burden. 

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6)  Wide range of credit products PLUS cheaper interest rates!

The credit card gods are on your side if you are such a good credit card owner. Interest rates are based on how risky you are and of course, this is judged through your credit history. So don’t abuse your credit limit! Keep a good record and you’ll get the most favorable rates, otherwise, you’ll get the worse ones.

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7) You can apply for a new credit card!

Well, what’s better than one? Two! But don’t be so much excited, this also warrants for more financial responsibility. 

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To have good credit history, all you have to do is the following: to regularly pay your balances, never ever miss payments and try to keep your credit low. 

There you go, who says it’s easier to be bad than good must not have a credit card. But well, in case you want to pay off bad credit or just be a good payer, you can always go to PawnHero for extra, just visit the website to learn more. Speaking of easy, you can download the PawnHero app into your phones, so can pawn ANYTIME, ANYWHERE. Plus, you can also do online shopping at Marketplace.ph, where authentic and pre-loved branded items meet bargain prices and feel really good about it.

Oh, don’t forget to like PawnHero Philippines and Marketplace by PawnHero on Facebook to get updates, join games and a chance to win cash prizes.

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Pawnina Bayani

Pawnina Bayani loves to shop, dine, and travel. She lives in a small yet cozy apartment with her cats and dogs. Her goal is to live life to the fullest, while still fulfilling her responsibilities. As a contributing writer for PawnHero, Pawnina brings tips and tricks on budgeting and saving, as well as practical advice on life and anything under the sun!