Five Areas of Life that Your Credit Score Really Matters

24 January 2014 | Uncategorized

It is no secret that a credit score is important. This become especially true after the economy collapsed and millions of Americans were jobless and relied on credit cards to get by. Now, they are trying to rebuild and are looking to improve their credit score for when it really matters. Below are 5 areas in your life where your credit score will really matter.Five Areas of Life that Your Credit Score Really Matters

1. Financially

Did you know that the interest rate on a loan can vary by several percent based on the score itself? For instance, a person with a 750 credit score can pay as little as 1.2 percent whereas a person with a 650 credit score could pay 3.5 percent. This means that the total interest charges on a 30 year home loan could vary by more than $30,000.

2. Insurance Rates

Just like the interest rates on a loan, rates on car insurance, homeowners insurance, medical insurance, and life insurance can vary. Those with poor credit are likely to pay double if not triple the rates than those with a good score.

3. Education

Many four-year institutions now require that a parent fill out documents that include a credit score to help a child achieve financial aid and loads. Those with a poor credit score are likely to see their child struggling to pay for college at all.

4. Job Hunting

Many companies now require a good credit score to be considered for employment. Although it may not be true, a poor credit score speaks to financial irresponsibility and most companies assume that irresponsibility will seep into your ability to be a good employee. For those who are jobless trying to repair our credit score, even if it means working for minimum wage, could be one step to helping you stabilize for career and your finances.

5. Home Life

Having a poor credit score is hard on families as credit scores are required to rent a good home in a good neighborhood. Those with poor credit scores are often unable to afford quality housing. Additionally, the cost for utilities is based upon a person’s credit score as well. A person with a great score may not pay much of anything to have water or electricity turned on. In contrast, someone with a poor credit score could pay hundreds of dollars in fees and deposits for the same privilege.

Having a good credit score is important. Click here to find out more through the experts at about fixing and improving your credit score.


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