Why Is Your Credit Score So Important?

You might think that having a passing credit score and being able to procure a loan or a credit card is “good enough,” but rates will still come into play. Getting even a single percentage point knocked off your interest rate could mean saving thousands (or even tens of thousands) of dollars on a large, small business or home loan. And it goes without saying that you’ll also get bigger loans and credit lines with a better credit score.

A credit score isn’t just used when lending. Credit reports are often pulled by anyone from landlords to potential employers. They want to see that you can be a responsible individual, and if you have no credit score (or a poor credit score), you may be denied for a rental property or even a job. Many employers believe individuals who have poor financial situations could be more likely to steal!

Have you ever had a medical emergency or other sudden expenditure? If you have a good credit score, you can easily procure a line of credit last minute to make sure that you are taken care of. If you don’t, you could find yourself taking out a costly payday loan or not being able to address a critical situation. By having a good credit score, you have peace of mind knowing that you always have options — even if you don’t necessarily want to procure more credit just yet.Your credit score will shape your financial future for your entire adult life, so it’s important to maintain and improve it whenever possible. For more information about your credit score and how it affects you, contact FMT Advisory, leaders in the personal finance and investment industry.personnel