Lauren Smith, WalletHub Staff Writer
Your credit score is important because it helps determine whether you’re approved for credit cards and loans (plus what interest rate you will pay), and it can affect the cost of other services like insurance and utilities. Your credit score is an indicator of your creditworthiness and overall trustworthiness.
Reasons Why Your Credit Score Is Important
- Determines access to credit cards and loan dollars
- Affects interest rates and borrowing terms
- Influences eligibility for rewards and benefits from financial institutions
- Can impact the cost of insurance, utilities, cell service, internet and renting an apartment
- Influences marriage prospects
Maintaining a good credit score can save you thousands of dollars in fees and interest over time. With a good score, lenders will extend credit to you at a lower rate, reducing your costs for a number of items such as mortgages and auto loans. You’ll also be in a position to qualify for the best credit cards.
Bad credit, on the other hand, will make borrowing money from any lender more expensive and may hinder your ability to borrow from a financial institution at all. Also, potential employers can review your credit history in some cases, though they do not have access to your credit score. Poor credit history can potentially prevent an employer from moving forward with a new hire.
Fortunately, you can check your latest credit score for free and find out how to improve your credit right here on WalletHub.
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