If you’re planning on buying a new car through finance, or you’ve finally saved up enough money to move out of your parents’ house and apply for a mortgage, then you need to start building a good credit score.
Your credit score is essentially a bunch of statistics based on all your financial decisions and hiccups over the last 6 years. In today’s world, it is all too easy for banks to access this report. This makes it all too easy for them to reject your loan application based on a few regretful money mishaps.
According to financial experts Empowered Finance, “This is because lenders believe they might be taking a higher risk when lending to you. This means your loan application will either be flat out rejected or you will be expected to pay a much higher interest rate.”