Everyone seems to say having a good credit score is important. But why? Does it really make a difference what your credit score is? Here are a few reasons why a good credit score matters to your financial life.
When applying for a loan (from a student loan to a mortgage on a house), a company will most definitely check your credit. They need to know that you have reasonable creditability before lending you the money you are asking for. By having a good credit score you are more likely to qualify for the loan that you need. Interest rates for your loan will be relatively low, and when applying for credit cards your limit will be higher.
Oppositely, if you have a bad credit score the company you are attempting to acquire a loan from may not see you as qualified and you might not be eligible for a loan from that particular company. Some companies will allow you to apply for a credit card or loan even if you credit is damaged. But, with a bad credit score you will have higher interest rates on loans, and if applying for a credit card your limit might be lowered.
So, how important is a good credit score? Good credit is very important. Especially if you want to apply for credit cards and loans to be as hassle-free as possible, and to have low interest rates. Good credit is essential to a financially peaceful life.