Having a good credit score can impact so many areas of your daily life. You want to have as good of a credit score as possible if you plan to buy a house to take a new job. There are six reasons why it’s important to have a good credit score.
The first important reason to have a good credit score is if you plan to take out a mortgage. If you are buying a home and have a good credit score you will be more likely to be approved for a higher amount as well as receive a lower interest rate. If your score isn’t the best, you may get approved for a mortgage, but for a smaller amount.
If you are planning on purchasing a car and need a loan, your credit score will also impact the amount of car you can finance. If you have a good score, you’ll be approved with a higher amount at a lower interest rate. If your score is lacking in some areas, you may only be able to afford a cheaper, used car.
If you are in need of opening up a credit card, you will want to have a good credit score to increase your approval odds. You may need a credit card if you have an emergency and want to leverage your debt to pay for that thing.
Another important aspect of having good credit is employment opportunities. Many employers run a credit check, especially if you are handling finances in your new job. If you make it to the credit check for a new job, you may not be offered the job if you have a bad credit score.
Lastly, interest rates are the last aspect of having a good credit score. If you need to borrow money, you’ll have to pay that money back. If you have a good credit score you will be given a lower interest rate which means you’ll pay back less in interest. If you have a worse credit score, your interest rates could be higher and you’ll have to pay back more.