5 Reasons Why Your Credit Score Matters

Banks Editorial Team · December 6, 2017

Credit scores dictate everything we do and purchase from the start of our adult lives.

From buying homes and cars, to taking out loans and starting a business, your credit score determines your lifelong success and happiness from start to finish.

A good credit score can be the simple difference between a life of constant frustration and a life of fruitful happiness at every turn. Credit scores are an easy way for lenders, bankers, employers, and just about everyone else to determine if you are trustworthy with an expensive purchase or loan. And although various companies configure credit scores differently, the core ingredients of paying bills in a timely and accurate manner will result in favorable credit scores, regardless of who is determining it.

No matter your age, sex, or gender, here are 5 reasons why your credit score is extremely important:

1. Buying a House

Owning and living in a home is one of the most common goals of an adult today. Everyone dreams of cutting back on monthly apartment payments and investing in their own piece of capital instead. Since homes are one of the biggest investments we can make today, banks and lenders want to be sure that you’re going to pay off the investment. If you show delinquent credit, you will be met with a higher deposit and possibly declined in the process.

2. Buying a Car

After the home comes the car. Although not as pricey as the home, most car dealerships will run an immediate credit check on you before they sign off on your shiny new vehicle. Even though fairly poor to moderate credit scores can still land you some kind of car, don’t forget about the auto insurance you’re going to need afterward. They, too, are going to verify if you are trustworthy or not.

3. Loans

At some point in life, you’re going to need to borrow money. It may be for a house, car, or business startup. Whatever the reason, you want a good credit score so your loan comes with an affordable interest rate. Over the lifetime of your loan, you will save thousands of dollars by taking out a loan with a high credit score.

4. Finding a Job

This point is a little discreet, but more relevant than ever today. Employers are now running credit checks on employees to get a good idea of their moral characteristics and defining attributes. Though this doesn’t apply to every employer, you don’t want to sabotage your shot at your dream job because you couldn’t pay off credit card bills on time.

5. Starting a Business

Even though you may hold an office job or internship position right now doesn’t mean you might not want to launch your own small business one day. Things change, priorities shift, and new dreams float onto our horizons every week. Having a poor credit score will stop you cold in your tracks before you can even think of founding your own business. Forget taking out any startup capital loans from lenders. Without the assistance, it will be nearly impossible for you to get your business moving.

Your Credit Score Matters

Maintaining your credit score, or working on credit score damage control if applicable, is one of the most important investments you can make in your future.

Keep your doors open, one favorable credit report at a time.

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