Credit Scores Make All The Difference

More and more people are starting to understand how important their credit scores are…do you?   Your credit scores make all the difference in how much you pay for goods and services.  Your credit scores are as good as gold, so value them like a nugget of gold.

But why is there such a fuss about a credit score number?  Who really cares about improving credit scores?   How about everyone in the financial industry.

Your credit score  number is a measurement used by the financial industry to help determine how creditworthy you are.   They use credit scores as a tool to measure your ability to make your payments on time.

If your credit score is too low, below 600 or 700, you could be a high credit risk; lenders do not want to deal with a consumer who is potentially a high credit risk.

The Importance Of Your Credit Score

Loans

Your credit score will determine whether or not you are denied a loan; and if you get it, how much you will pay in interest rates.   This applies to auto loans, student loans and mortgage loans.

If your loan applications keep getting denied you may consider looking into your credit scores…they may be too low.

Credit scores and credit cardsCredit Cards

How much interest do you like paying on your credit cards?   Your credit score will affect what interest rates the credit card companies charge you.   Your credit score also determines the credit limit your credit card companies will extend to you.

If you are paying too much in interest rates, or your credit card limits are too low, you may want to look at your credit scores…they may be too low.

Other Financials

Your landlord could deny your application for an apartment based on your credit scores or they could charge you more in rent.   Again, if you are considered a high credit risk, landlords do not want to be stuck with a tenant who does not pay their rent.

What you pay for your utilities, which include your telephone, electric and gas, can be affected by your credit score.   The size of the deposit you will have to put down to start services is also determined by your credit score.

Your credit score does make a difference in how much you pay for goods and services.   If you like wasting money on interest charges, down payments and fees than ignore the advice from financial experts about the importance to improve credit scores.     But if you want to save money, take the time to improve your credit score.