Repaying a loan or a credit card completely can happen overnight for just about anyone. Having a onetime lump sum amount to repay it does not symbolize good credit history or repayment ability. Once you have repaired your credit score by learning how good is a 650 credit score over a period of time you need to ensure that you do not do certain things that would affect it. One of the things is taking unnecessary loans or lines of credit. You should only spend what you earn. Loans should be reserved for emergencies and should not be taken just for the heck of it. Once you start saving money and using it responsibly you will not need any loans or credits as well.
Repaying the entire outstanding does not necessarily help credit scores. Repaying the EMI on time month on month helps credit scores to improve gradually. When you repay the entire outstanding loan in one payment you do not get an opportunity to show the credit agencies your repayment ability over a period of time and that is what matters to credit agencies. Your ability to pay money constantly over a certain duration is one of the most critical factors.
Many landlords look at credit scores before giving out their apartments on rent. With good credit scores you can get a house on rent with ease. Car insurance rates can be a nuisance for quite a few people. While some think that the insurance rate is only dependant on the age and condition of the car, insurance companies also look at the credit history of the owner. They feel that people with bad history will make more claims and hence a good credit score means a lower rate of insurance. With good credit scores you can also avoid having to pay heavy security deposits when you get a utility service in your name.