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5 Reasons To Maintain A Good Score
Society is becoming increasingly dependent on credit to make purchases and financial decisions. A good credit score is used for more than just getting a credit card or a loan. Credit scores demonstrate your history of paying your debts to entities that loan you money.
Housing
Maintaining a good credit score and profile will provide a substantial head start when attempting to secure a rental property or to purchase a home. Landlords often require both a credit check and background check to determine your desirability as their tenant. In addition, good credit scores play multiple roles when working with a loan office, both your approval and payments will be affected by your credit score. The interest rate on your mortgage will be based on your credit score, which can increase your mortgage payment and limit your home buying options.
Auto Loans
Many people are unable to purchase a new vehicle with cash, so they rely on auto loans to fill in the gap. Your credit score will not only determine if you will qualify for a loan, but it will also affect the approval amount and the interest rate. A lower credit score will limit your options and, in some instances, prevent you from purchasing the vehicle of your choice.
Employment
At times, employers may conduct credit checks during the hiring process. Employers are looking at your credit to determine if you are financially responsible with your resources, if not, some prospective employers may reconsider hiring you.
Living Expenses
Your credit score can also affect your access to the necessary and comfort elements of everyday living. For example, it is common practice for the following industries to perform credit checks prior to allowing access to their services: utility companies, cell phone companies, and internet service providers. Lack of good credit may lead to higher security deposits or outright denial of services.
Education
Educational goals, college, graduate, and professional schools can be extremely expensive. Depending upon you and your family’s financial situation, a loan may be the only option to pay tuition. Often, students do not satisfy the loan requirements and parents are asked to acquire additional funds. Your credit score may prevent you or your child from attending a higher education institution and fulfilling their career goals.