By now, you are probably aware that you have a credit score. The only way you do NOT have a credit score is if you have avoided banks and credit cards (not a wise choice in today’s world…read on).
Why is a credit score important? Banks and other lending institutions feel that your credit score is an indication of whether you are a financial risk. It helps companies/ landlords/lenders decide whether they want to work with you. Your score is reviewed by many, and a bad score (or no score) can limit your options. Businesses that will check your credit score before doing business with you, include (but are not limited to):
- Apartment complexes
- Mortgage companies
- The company where you want to work (many check credit scores before hiring)
- Car rental companies and hotels
- Insurance companies
- Cell phone companies and other service providers
Your credit score indicates your responsibility, discipline, and ability to manage your personal affairs. While it may seem like a weak indicator of who you are, it may be all the lender/landlord/prospective employer has to look at in making a decision about you.
What do you think about credit scores as an indication of responsibility? Are you managing your credit score? Lt us know!