Tag Archives: Ratios

Improving Your Credit Rating Brings Fantastic Opportunities Your Way!

Michael J Robinson asked:

Did you know that an improving credit rating will open the door to many new opportunities, save you hundreds or even thousands in annual interest costs, save you money on insurance premiums and even help you get new employment a whole lot easier? It’s a fact and here are the reasons why…

Improving your credit rating opens new doors of opportunity…

By simply taking the necessary steps to improve your credit rating and getting your credit score up to 720 points plus you will be seen through the eyes of a bank or lending institution as a sound credit risk, and provided you meet their other lending criteria such as income to debt servicing ratios etc… you are far more likely to qualify for a home loan.

Now then, just think about that for a moment… imagine if you could borrow to buy that house down the road which is going into foreclosure and you know it will be selling for a bargain price… then you could use it as a renter that pays it’s own way without you having to pay in to it and it builds up your equity… can you see the opportunity?

Not that this is promoting taking advantage of other people – it certainly is not… however there are a lot of foreclosures currently, and the banks are going to sell it regardless… to whoever is willing to buy… right. So if you have good credit the doors of opportunity will open up.

Improving your credit rating can save hundreds or even thousands in annual interest costs…

With a proven credit rating and a credit score of 740 points plus you will secure the very best lending terms and pay the lowest current interest rates… and the savings you make in interest over the course of a year can be quite remarkable!

It is quite possible for someone who has a credit score of 750 points to pay anything in the vicinity of half a percent to 2% less than someone whose credit score is 650 points… especially if the lower score somebody has to borrow from 2nd tier lending institutions.

So let’s run the numbers… if you borrow $200,000 at 5% on interest only you are paying about $10,000 per annum. If Joe Somebody borrows $200,000 at 6% they will pay $12,000 per annum… a difference of $2,000 – in just one year or about $40 per week.

Couple that with the fact that you want the very best rate because maybe you are borrowing to buy the deal described above and don’t want to have to top up the mortgage payment, but rather have the rental cover the mortgage… then suddenly the interest saving becomes vital!

So as you can see… an improving credit rating is of high value to you in this situation too.

Reduce your insurance premiums

Reduced insurance premiums are another benefit you gain from an improving credit rating, simply because you are seen as less of a credit risk and insurance companies also factor in that you would be less likely to default on payments etc.

Provided you have no claims or very few at least you will find that over time your insurers will offer you better terms and reduced premiums. If they do not, then advise them that you will be trying a few other insurers to make comparisons, knowing that your credit rating will hold good sway with them also.

You’ll be amazed at how quick and favorable your response is from your existing insurer.

Improving credit enhances new employment opportunities

In today’s competitive employment environment it is essential that you improve your credit rating, as employers now have direct access to your credit file and of course this can have an effect on whether you secure a new position or not.

A poor credit rating and a history of unpaid debts etc would suggest to any employer that you could be unstable in your work habits also and this will really count against you.

Quite the opposite picture is painted for the employee who has a clean credit record, as obviously it suggests stability, reliability and good ethics… all the qualities a smart employer will be looking for.

To conclude: the reasons above make it is easy to see how the doors of great opportunity can open wide to the person with an improving credit rating… however one question remains:

“How do you improve your credit rating…in order to cash in?”

Answer: visit the link below and claim your free video e-course on how to improve your credit rating… you’ll find out everything you need to know!