Your credit score is, essentially, your proof to banks and other loan offices that you’re responsible with your money.
A good credit score will allow you to receive loans for the most major expenses you’ll experience in life, from mortgages and credit cards to student and car loans. The better your credit score, the more likely an institution is to let you borrow their money.
Not only that, but a good credit score will also net you lower interest rates when you utilize these loan services. If you can prove to the banks that you’ll pay them back on their terms, they’re more likely to go easy on you when it comes to APR and financing.
In many ways, your credit score determines when, how, or even if you’ll be able to take the next big step in your life. A low credit score likely means you won’t be able to get the car you had your eye on, won’t be able to attend another semester of college, or move into your dream home.
Clearly, it’s important that you stay up to date on your credit score. Before you even start shopping around for a loan, know where you stand in terms of credit ratings. Understand how you can utilize a good score to gain leverage, so when you walk into a bank you don’t leave more confused than you were beforehand. And, perhaps most importantly, use your credit rating to know that your identity is safe from fraudulent claims and that nobody is ruining your financial reputation.
If you end up having a lower credit score than expected, it’s not the end of the world. Check out the following infographic from CreditMarvel for tips on how to quickly improve a low credit rating.