In these days, it is hard to get along in life without a good credit score. From buying a house, car or other large-ticket item to landing a job and finding reasonable insurance, your credit score has a significant impact on your life. While having a good credit score won’t improve your looks or increase your IQ, it definitely makes some things in life a whole lot easier. Once you’ve achieved a good credit score, it takes some work to maintain it, but it is worth the effort.
- Pay less to borrow more. A good credit score allows you to borrow money at a lower rate. Whether it’s a home mortgage, a new car or a yacht on which to sail the seas, with a good credit score lenders are willing to offer a low interest rate because you have proven you can handle your debt. You may also qualify for better credit card deals.
- Land a better job. More and more employers are basing their hiring strategies on what shows up on your credit report. A good credit score shows you are dependable and reliable. Of course, you still have to go through the dreaded interview process and be qualified in other ways, but the credit score is becoming an integral part of the ordeal.
- Insurance at a better rate. Insurance agents are also checking out credit scores and how much credit card debt you carry when considering you for insurance. They want the lowest risk, and with a good credit score, you are considered a low-risk investment of their money. This translates into lower rates for you.
- Avoiding annoying deposits. A good credit score means you might not have to come up with large amounts of cash for deposits on utilities. The utility company sees you pay your bills and you pay them on time, and will often waive any deposits required for utilities.
- Appeasing the landlord. Although a good credit score will most likely not circumvent a security deposit on an apartment or condo, it may qualify you for better lodgings. The majority of landlords will require a credit check before they’ll rent to you. If your credit score is bad, you may end up in a tent rather than a nicely appointed home.
A good credit score is not the answer to all your problems – it can’t cure acne or make you more attractive to the opposite gender. However, good credit can ease a lot of the more financially difficult things in life, and that might be a better deal all the way around.
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{ 3 comments… read them below or add one }
Great list! It’s amazing how your credit score affects so many areas of your life.
David´s last [type] ..Build a 1-200 Long Term Food Storage Supply For Free
One of the good things that has come out of this cruddy economy is I do think it has brought the importance of credit scores to light. Of course, many don’t care about their credit score and are more than willing to sacrifice it in order to walk about from their home. However, credit scores have gotten a lot more press, and hopefully, people will do more to protect their credit score as they will know the impact of a bad score.
Everyday Tips´s last [type] ..Financial Lesson Learned From “Half Broke Horses”
Anymore, the credit score is being used as an overall proxy for level of responsibility which is why it is important to employers. It is easy to falsify references and transcripts but hard to manipulate 3 independent credit reporting agencies.
optionsdude´s last [type] ..Taking Advantage of Price Spike in ONXX