Get Educated About Why
The best thing you can do is arm yourself with knowledge so that you can take action now, and make better decisions in the future.
The number one reason why your credit score matters is … MONEY.
The lower your credit score, the more money you pay. And why should you, when you can take steps to mitigate the loss, and stop the bleeding?
If you’ve got bad credit or your credit score is in the poor range, loans are costlier, options are fewer, and you could become a target for predatory lenders.
Keep in mind that employers and insurers may look into your credit file when hiring you or insuring you.
“Your credit information can be a factor in whether or not you can rent a nice apartment, how much you pay for insurance or whether or not you can get a job.” – Your Credit Score: How to Improve the 3-Digit Number That Shapes Your Financial Future (4th Edition) by author Liz Pulliam Weston, published by FT Press, copyright 2012.
It is very common for landlords, insurers and employers to use the information in your credit file to extrapolate your characteristic financial behavior. Having bad or poor credit often suggests that you are a risky bet.
While your credit file is just a compilation of details about you, the information can imply, and creditors often do, make assumptions based on this data.
As author Liz Weston illustrates, in her book, excerpted above, your bad credit implies that you may be just as irresponsible driving a car, taking care of an apartment, or showing up for a job.
This data paints a picture about how you deal with debt. You have the ability to directly impact how you appear to creditors by taking control of YOUR credit file.
Now, in contrast … good credit can signal that your financial behavior … and your life in general … is all systems go … and that you are on the right track.
All of this makes you very attractive to lenders, they feel you are a good risk, that you are very likely to repay the debt.
The payoff for you is low interest rates. The payoff for lenders is low risk of loss, and low risk of you being a no-pay. Are you beginning to see how it all works?
WHY PAY MORE?
WHY PAY MORE FOR ANY LOAN THAN YOU HAVE TO?
BETTER CREDIT SAVES YOU … $$$-THOUSANDS-$$$ … OVER YOUR LIFETIME!