The punctuality in matters of loans and credits is quite important, to be a good payer, i.e. pay our loans on time opens the door for access to other financial products perhaps someday we need. Therefore, that we have made a small list for some of the most important benefits to pay loans on time.
An impeccable record
In most countries financial institutions have a comprehensive record of all customers and their financial behavior, there are even institutions dedicated to describe positively or negatively to customers eager to know who is in credit and who does not, all depending on their financial record. That’s why we ensure that having a clean financial record would be the most important benefit we can have as a reward for our punctuality. We must take into account that our “credit history” the bank already knows it.
The growth of our rating
Perhaps with a credit records good but short we can access loans fast; but a constant good financial behavior that implies timely payments will make our rating grow and we can get bigger loans. The bank or any financial institution will rely heavily on our credit history. A good payer always has a better chance to access better credit.
Access to other financial products
We never know when we will need the services or products of a financial institution or bank. That is why we should have a good credit record based on punctuality, so we can more easily access a mortgage, a student loan, a personal loan to buy a car or a house for example. Think about your future credit.
How to achieve it?
Being punctual and responsible with our financial duties is easy if we are cautious and aware, in addition to the point.
- Be realistic with ability to pay. Do not borrow with amounts greater than your monthly income; and even if you do not access your income you must take into account your personal finances and ability to pay.
- Perform a payment schedule. If you have more than one debt or credit, make a payment schedule with dates and amounts; so you will be aware of when and how much you must pay.
- Avoid delays. Delays produce penalties and interests, which are usually extremely high, which leads to over-indebtedness, which will be even more difficult to get out.
- Find out the rates and benefits of each bank. Each bank or financial institution varies in interest rates and other financial details; some even give benefits for the simple fact of being punctual. That is why before accessing credit shuffle all options and see which is best for you.