Having a high credit score is more beneficial than one might think. It helps you to collect personal loans and credit on favorable terms. But the benefits are not limited to this. An impressive score also offers several other benefits. Although the credit score is not yet a key factor in India in transactions outside of loans such as renting or employment, it is gradually becoming a make-or-break consideration. For example, a wedding was called off at Murtizapur in the Vidarbha region of Maharashtra in February this year when the girl’s family discovered that the boy had a poor credit rating. Some Key Benefits of a High Credit Score I. Rental Equipment: When you lease a vehicle or business equipment, the lessor will view you as a credible and low-risk lessee. This – in the long run – can help you save money. II. Personal Relationships: As mentioned above, there may be some rare cases where future partners and their families check your credit history to assess your financial health. Therefore, a high credit score can reduce your chances of a canceled wedding, just like in the case mentioned above. III. Pitching to Investors: Remember Cinnamon Kitchen’s Priyasha Saluja from Shark Tank India, who clinched a deal from Boat’s Aman Gupta by impressing him with an exceptionally high credit score? All the sharks were hooked when she revealed that her score was 838. IV. Better job prospects: Again, this is still not very common in the Indian context. Some jobs that involve handling money and loans may consider the credit score of job applicants. These positions can be in a bank, financial institution or a fintech firm and can be related to lending and financial products. V. Business Association: There may be some finicky customer or business partner who insists on dealing only with those people who have a high credit score. Warren Buffett once said that you can’t make a good deal with a bad person. And credit score is a reflection of a person’s intentions. Disclaimer: Mint has a relationship with fintechs to provide credit, you will need to share your information if you apply. These bindings do not affect our editorial content. This article is only meant to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks like high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Beyond Loans and Credit Cards: From Better Marriage Prospects to Jobs – Hidden Benefits of a High Credit Score
