Taking a loan is the easiest way to get funding for any new business or expanding an existing one. This is because the money gotten from a loan comes in a lump sum and borrowers can always have a chance to take loans from different institutions ranging from Sacco to international banks. However, this opportunity is limited for most borrowers as they can borrow, a certain amount from specific institutions. One feature that disqualifies borrowers from borrowing money freely is their credit score. When you have a low credit score, you get loans at high interest and most financial institutions will be reluctant to lend the money. This may lead to slow business progress as you may not have other sources of funding available to you. However with numerous financial institutions working had to ensure you qualify the loan that you want, you can easily get advice on how you will increase this score. Here are some of the reasons why increasing your credit score and why should look for counseling to help you increase your borrowing power.
The first benefits of a high credit score is an improved ability to borrow and higher chances of having your loan request approved. Applying for a loan is one thing but having it approved is another. Most lending managers will take their time to assess your ability to pay back and use your credit score to calculate this ability. In cases when your credit score is too low they will have to look for ways to ensure that they ascertain that you can pay their money back. One way involves coming to your premises, looking for the assets that you have and at times asking for guarantees. All this takes time and it delays your loan approval. However, if you have a good score your request will be approved immediately.
The second advantage is an improved negotiating power. You can not only negotiate for better terms but you can also request for a higher amount of loan. The institutions have confidence in you and look forward to meeting your desired financial needs. How about the fact that you have the opportunity to get loans from more institution? In other words, when you have a good score you can always choose what you can take.
The last advantage is better car insurance rates. You are known to have a good credit record and this makes you get better terms with insurance firms. Every firm will want to work with you and this means that they will give you the best terms to complete a good deal with you. This is not only good for your borrowing and insurance needs but you can also get items such as phones on credit without any security deposit. Besides you have the peace of mind that you can get any item that you want even when you do not have enough money.
Improving your credit score is a good idea and the first step to this is getting the right advice. Click more on this site for such counseling.