A credit score is not just some random number, it has a great importance which can significantly impact your financial life. A good credit score has a lot of benefits; from getting credit cards that offer better reward points, better rate of interest, low annual fees, access to mortgage loans, car loans and much more. It is not that you cannot survive on a bad credit score, but your life will be much more costly. Here are some paybacks of a good credit score which can motivate you to build one for yourself.
Higher Chances of Loan Approval: The chances of getting a new credit card or a loan are low when you have a bad credit history as you are considered as untrustworthy and your applications will be turned down. But on the other hand, if you have a good score, the chances of approval are high, and you can apply with greater confidence. Banks and lenders see you as less-risky as they are more likely to get paid back for the loan they provide.
Lesser Interest Rates: A credit score is a major criterion when the rate of interest is calculated on your loan application or credit card borrowings. If you have a good credit, you will end up paying a lesser rate of interest and pay a lower financial fee for loans and balances. You can use the money you save on the rate of interest to repay the loan faster. Moreover, you have greater negotiating power when you have a good credit as you can bargain showing various offers that you have got from other lenders. On the contrary, if you have a low score then you will have fewer offers and fewer chances of getting good deals.
Higher Credit Limit: A good credit score implies that you have a proven track record of being creditworthy. So lenders are more than willing to increase the credit limit provided the income to debt ratio is high along with a good credit score. Using that you can apply for an increase in credit limit or get approved loans easily and quickly. A higher credit limit implies better savings for you and a guaranteed payback for the lending institutions.
Easy to Rent an Apartment: Landlords are checking the credit score of their prospective tenants like lenders as they want to ensure that the person who is renting their property can pay the rent on time every month. A bad credit score or a balance in the previous rent is an ominous sign of the landlord and you may not be able to rent an apartment. Having a good credit score will ensure that you can rent the apartment you like without any hassles.
Zero or Low Security Deposits: Security deposits on utilities like water, electricity, and a phone is a major setback by a few hundred dollars. When you have a good credit score, you can get these without having to pay so much money as a security deposit. If you pay your bills on time, the service providers will reduce the amount as you are a valuable customer and a mutual trust factor is established.
A good credit score does have its own paybacks, so work towards getting a better score and reap in the benefits!
G20 to pledge support for robust post-COVID recovery, cash for IMF
By Andrea Shalal and Michael Nienaber
WASHINGTON/BERLIN (Reuters) – The world’s financial leaders are likely to pledge on Friday to support a robust global recovery and to boost the International Monetary Fund’s resources so it can help poorer countries fight off the effects of the global health crisis.
Finance ministers and central bank governors of the world’s top 20 economies, called the G20, will hold a video-conference on Friday and the global response to the unprecedented havoc wreaked by the coronavirus on the economy will top the agenda.
Hopes for constructive discussions at the meeting, chaired by Italy, are high among G20 countries because it is the first since Joe Biden, who vowed to rebuild cooperation in international bodies, become U.S. president.
“The ministers will talk about the need for fiscal policies for a swift and robust recovery, because they want to avoid the risk of too early a reduction in fiscal support,” one G20 official said.
The meeting comes as the United States is readying a $1.9 trillion fiscal stimulus and the European Union has jointly put together already more than 3 trillion euros to keep the economy going despite COVID-19 lockdowns.
But despite the large sums, problems with the global rollout of vaccines and the emergence of new variants of the coronavirus mean the future of the recovery remains uncertain.
While the IMF sees the U.S. economy returning to pre-crisis levels already at the end of this year, it may take Europe until the middle of 2022 to reach that point.
The recovery is fragile elsewhere too — factory activity in China grew at the slowest pace in five months in January, hit by a wave of domestic infections, and fourth quarter growth in Japan slowed from the third with new lockdowns clouding the outlook.
“The initially hoped-for V-shaped recovery is now increasingly looking rather more like a long U-shaped recovery. That is why the stabilization measures in almost all G20 states have to be maintained in order to continue supporting the economy,” a second G20 official said.
But while the richest economies can afford to stimulate an economic recovery by borrowing more on the market, poorer ones would benefit from being able to tap credit lines from the IMF — the global lender of last resort.
To give itself more firepower, the Fund proposed last year to increase its war chest by $500 billion in the IMF’s own currency called the Special Drawing Rights (SDR), but the idea was blocked by the then U.S. president, Donald Trump.
The change of administration in Washington on Jan. 20 also changed the prospects for more IMF resources and U.S. Treasury Secretary Janet Yellen backed the idea in a letter to the G20 on Thursday.
Civil society groups, religious leaders and some Democratic lawmakers in the U.S. Congress have called for a much larger allocation valued at $3 trillion, but sources familiar with the matter said they viewed such a large move as unlikely for now.
The G20 is also likely to agree to extend a suspension of debt servicing for poorest countries by another six months.
(Reporting by Andrea Shalal and David Lawder in Washington, Michael Nienaber in Berlin and Jan Strupczewski in Brussels; Writing by Jan Strupczewski; Editing by Daniel Wallis)
Car sector seeks more UK government support as output tumbles
LONDON (Reuters) – British finance minister Rishi Sunak should use next week’s budget statement to help boost the car industry’s competitiveness, a trade industry body said on Friday, as production tumbled to its lowest January level since 2009.
Sunak is due to detail how he will further support the economy amid COVID-19 restrictions on March 3.
The Society of Motor Manufacturers and Traders (SMMT) said the furlough scheme that protects jobs should be extended, more support for training was needed and manufacturing investment should be encouraged through reform of the business rates tax.
“Next week’s budget is the chancellor’s (finance minister) opportunity to boost the industry by introducing measures that will support competitiveness, jobs and livelihoods,” SMMT Chief Executive Mike Hawes said.
“We need to secure our medium to long-term future by creating the conditions that will attract battery gigafactory investment and transform the supply chain.”
Output in January fell by 27% year-on-year to 86,052 vehicles, hit by factors including dealership closures during a latest COVID-19 lockdown, international supply chain problems and the change in trading terms with the European Union.
(Reporting by Costas Pitas; Editing by William Schomberg)
Exclusive: Portugal sees green hydrogen output by end-2022, $12 billion in investment lined up
By Sergio Goncalves
LISBON (Reuters) – Portugal will start producing green hydrogen by the end of 2022 and already has private investment worth around 10 billion euros ($12 billion) lined up for eight projects that are expected to move forward, Environment Minister Joao Matos Fernandes said.
He told Reuters in a telephone interview there were also several “pre-contracts for the purchase and assembly of electrolysers” to produce the zero-carbon fuel made by electrolysis out of water using renewable wind and solar energy.
Such hydrogen is more expensive to extract than the heavily polluting conventional method of using heat and chemical reactions to release hydrogen from coal or natural gas, known as brown and grey hydrogen respectively.
Hydrogen is now mostly used in the oil refining industry and to produce ammonia fertilisers, but sectors such as steelmaking, transportation and chemicals are beginning to develop large-scale hydrogen applications to gradually replace fossil fuels as countries try to reduce pollution.
The European Commission has mapped out a plan to scale up green hydrogen projects across polluting sectors to meet a net zero emissions goal by 2050 and become a leader in a market analysts expect to be worth $1.2 trillion by that date.
“By the end of 2022, there will certainly be green hydrogen production in Portugal,” Matos Fernandes said. “Green hydrogen will, over time, allow Portugal to completely change its paradigm and become an energy exporting country.”
He said seven groups had submitted applications under Europe’s IPCEI scheme for common-interest projects to make part of a planned export-oriented “hydrogen cluster” near the port of Sines, from where hydrogen could be shipped to Rotterdam. Total investment there is estimated at some 7 billion euros.
A consortium including Portugal’s main utility EDP, oil company Galp, world’s largest wind turbine maker Vestas, among others, is behind one of the projects.
In Estarreja in north Portugal, local firm Bondalti Chemicals aims to invest 2.4 billion euros in a hydrogen plant.
Altogether, these envisage an installed capacity of over 1,000 megawatts (MW).
Matos Fernandes said Portugal was also negotiating with Spain the construction of a pipeline for renewable gases, including hydrogen, from Sines to France, crossing Spain.
Spain and Portugal also want to develop an ambitious cross-border lithium project taking advantage of the geographical proximity of their lithium deposits and aiming to cover the entire value chain from mining to refining, cell and battery manufacturing to battery recycling, he said.
Portugal is already a large producer of low-grade lithium mainly for the ceramics industry, but is preparing to make higher-grade metal used in electric car batteries.
A much-awaited licensing tender for lithium-bearing areas that has been delayed by the COVID-19 pandemic should take place by the year-end, Matos Fernandes said.
He promised the tender would address environmental concerns by local communities and there would be no lithium mining “at any cost”.
The minister also said Portugal would use its six-month presidency of the Council of the European Union to finalise a landmark law that would make the bloc’s climate targets irreversible and speed up emissions cuts this decade, expecting it to be approved in the first half of 2021.
(Reporting by Sergio Goncalves; Editing by Andrei Khalip and David Evans)
G20 to pledge support for robust post-COVID recovery, cash for IMF
By Andrea Shalal and Michael Nienaber WASHINGTON/BERLIN (Reuters) – The world’s financial leaders are likely to pledge on Friday to...
Isoprene Rubber Latex Market: Complete Analytical Report for 2021 with leading key players Hartalega Holdings Berhad, Kossan Rubber Industries Bhd, Top Glove Corporation Bhd, Rubberex Corporation (M) Bhd.
Isoprene Rubber Latex Market: Report Description This FMI study offers a ten-year analysis and forecast for the global Isoprene Rubber...
Oxo Chemicals Market Worth Observing Growth: The Dow Chemical Company, BASF SE, BAX Chemicals BV, ExxonMobil Chemical Company
Future Market Insights has adopted multi-disciplinary approach to shed light on the advancement of the Oxo Chemicals Market during the...
Automotive Foams Market Expected to be Valued High During the Forecast Period 2021 to 2026
Future Market Insights has adopted multi-disciplinary approach to shed light on the evolution of the Automotive Foams Market during the historical period....
COVID-19 Impact on 3D Printing Materials Market Growth, Overview, Competitive Landscape and Forecast 2021 to 2026 | Stratasys Ltd., Arevo Labs, Evonik Industries AG, Farsoon, Inc.
Future Market Insights has adopted multi-disciplinary approach to shed light on the advancement of the 3D Printing Materials Market during...