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Importance of having a good credit card The use of credit card to buy goods and to make decisions have greatly increased. There are many ways of using credit cards in the modern world apart from seeking a loan. More and more businesses have a come up with the idea that customers must have good credit so that they can extend products or services for them. The place you live and the amount of money you pay where you live can be determined by your credit card. Prior to buying a house, a lender wants to find out whether you can pay your loan back. If your credit is not impressive, the lender wills that t is risky to give you a mortgage loan. If the lender approves your loan, the state of your credit card will also determine the amount of money you pay back monthly. A loan applicant will be subjected to pay a higher monthly mortgage payment if they have a bad credit card. Poor the performance of the credit card would make the loan applicant miss an opportunity to be credited. Some landlords determine whether they will rent you a house using your credit card. These landlords consider the lease as a loan. The landlord gives you a place to live in the form of a loan, and they want to determine whether you can manage to pay the loan back. You can fail to get a chance to rent in some apartments due to a credit card showing poor performance.
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The car you will be can be determined by your credit card. Unless you have all the money in cash, you will have to get a loan to buy a car. How you have performed on your credit card will determine whether the lender will give you some money for a loan, the amount of money they will credit you and the interest rate that you will be charged. Generally, a loan applicant with a good credit card is likely to obtain a higher loan.
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Bad credits will limit your chances to get a higher amount of loan. Only few lenders can accept to give you a loan if your credit card shows poor performance, and if they do, they will charge you a higher interest rate. Credits can be a determinant of whether you can qualify for a job. Some employers go through the credit card of the job applicants as part of the hiring process to see whether the applicants qualify for the job. If the credit card of the job applicant shows poor performance; this could be interpreted that the job applicant is financially irresponsible and this makes them lose an opportunity for a job. The employer might conclude that your level of debts is too high for the salary offered. Besides, credit can determine your ability to start a business. Most businesses require a large capital to start, and you may not have all the money in cash, and therefore you are required to borrow some money in the form of a loan. To be credit for a business loan, you require having good credit card.