When it comes to your financial health, your credit score plays a vital role. While most people understand that their credit score is the key to getting approved for a loan, not all realize that having a great credit score improves your finances.
This is because a high credit can save you money. The higher your score, the lower the interest rate you will qualify for, thus saving you money over the life of your loans. Because of this, this post is going to guide you through a credit score, from everything to what makes it up, what helps and hurts a score, how to improve yours, and how to check it.
Why Your Credit Score Is Important
As I mentioned above, your credit score is vital in helping you get approved for a loan. This allows you to buy a house, a car or even get approved for a credit card. But your credit score goes beyond just helping you with borrowing money.
In many cases, your auto insurer takes into account your credit score. Why? Through their number crunching, they have determined that credit scores and driving habits are related. They have found that the higher the credit score, the more responsible of a driver a person is, and therefore, less likely to get into an accident.
Your credit score even comes into play in landing a job! As with auto insurers, employers have done their own number crunching. They have found relation between good employees and high credit scores. [Read the full article]