Being a personal finance blogger, I, of course, think a lot about finances. One thing that crosses my mind a lot is my credit score and how it could possibly affect my life. However, I have come across many websites that are completely anti-credit score.
I am not like that though. I think improving your credit score doesn't have to be hard and stressful. It becomes more of a habitual thing in your life and you don't even have to think twice.
Your credit score can impact the interest rate you receive on a loan.
This is the most obvious one and what most people think of when they think of credit scores. Credit scores can affect a mortgage, Sterling Loans, car interest rates, and so on.
A good credit score may mean that you may qualify for a good interest rate (there are many 0% interest rate offers out there!).
A bad credit score may mean that you get a very high rate (I have seen a 24% interest rate for a car loan for someone before!).
The different of just a few percentage points of an interest rate may mean a huge different. If it is a big purchase, such as a home, you can see a difference in your mortgage payment of hundreds of dollars. That is hundreds of dollars each month that you could be saving if you just had a better credit score?
A bad credit score may also completely reject you from a loan. You may not be able to get a car, a home, etc.
Your credit score can impact your car insurance rate.
I didn't know this until recently, but a low credit score may mean that you are given a higher car insurance rate. Car insurance companies look at credit scores so that they can try to determine your risk. A lower credit score may mean more risk to them.
Your credit score can impact whether or not you get a job.
A bad credit score probably won't completely eliminate you from a position. However, if a financial job came down to you and another person who was very similar to you except for your credit score, then they may pick the other person.
Are you always working on increasing your credit score?
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