Is Your Credit Score Good? 3 Reasons Why It Should Be

Sun, May 12, 2013

Financial Advice

Have you ever worried about your credit score? Probably. Between the many ads advising us to get a credit report and the numerous articles found online about the importance of good credit, you probably are aware of how crucial a good credit score is. Determined by five different factors (your credit payment history, the amount of debt you have, the number of credit inquiries that were made on your account, the types of credit you have and your credit account history), your credit score can make you or break you. Why? Here are three most important reasons why a good credit score is important.

For Your Professional Life

Your future employers may check your credit score before hiring you. Financial responsibility is an asset that many employers look up too. If your record is not clean and if your credit history demonstrates a certain lacking in financial discipline, even if you are qualified for the job and competent, you might not have good chances to score it!
For Your Home Buying Plans

Along with your yearly salary and your financial status, the first thing that bank and mortgage loaners will check is your credit score. Unless you have enough savings to pay cash, forget about buying the house of your dreams if your credit score is bad: Bankers and financial institutions need to know that they can trust you before lending you the considerable amount of money needed to invest in real estate.

For Your Car Buying Plans

Same as for your house: Unless you have a lot of money aside, you’ll most likely need to get a loan to buy a car. Here again, if your credit is bad, not only will it be harder to find a financial institution willing to lent you money, but also, if you do get a loan, your interests rates might not be as advantageous as they could be if your credit score was good.

Caroline Simpson is a writer; a translator and a travel addict who’s always looking for ways to make life easier. She works as a freelance blogger for www.standardlife.ca, a leading long-term savings and investment company providing a great variety of retirement products.

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