Yeah, making a lot of cash is great and all, but there’s a lot more to it than that. Did you know that your credit score is pretty important not only on your finances, but your *gasp* quality of life?
If you don’t, let’s set you straight, right here, right now. No doubt about it, your credit score matters.
What’s The Big Deal?
The three digit number that makes up your credit score is like a mark on your forehead branding you. Banks and other institutions take one look at you and decide whether or not you are a risk to their business. Sure, you’d like to think you’re a little rebellious every once in awhile, but a bad credit score isn’t really something you want to risk. In fact, not having one at all is pretty much a no-no also.
See that fancy new house you want to put your shiny white leather couch (do they still sell those in stores?) in? Yup, you guessed it, you need a good credit score. If you have a crappy one, well, you’ll just be sitting in that house in your dreams.
The higher your credit score, the more of a rockstar you are. It gives you the best chances to the best lending rates and terms, like getting that sexy new Porsche to go with that white leather couch. It shows you are trustworthy enough so that not only do you have the income but you can pay lenders and company back on time.
Your credit score may also help you with landing that dream job. Many employers including those in the finance industry would like to look at your credit score as part of the hiring process. In fact, if you want to go into careers where you’re in a position of authority like the FBI, Looking at your credit score is a way to determine trustworthiness and reliability. For example if you have a good credit score, employers will like think you are less susceptible to taking bribes or thievery. In other words, if you pay your stuff on time, you’re less likely to be desperate enough to find ways to pay the bills.
Looking to save more money? Yes, a good credit score helps too. Places like insurance, cable or utility companies might ask for your Social Security number to sneak a peek at your credit profile. Extra points for guessing that the higher your credit score, the lower your bills can be. I’d take all that extra money and spend it on however you wish.
Want to get the skinny on what the numbers actually are?
Take a look at how good your credit is by the numbers below:
Excellent = 720 and higher
Good = 660 to 719
Fair = 620 to 659
Poor= 619 and lower
My Credit Score is Unsexy
A bad credit score might be worse that appearing nude in public. Or letting out a big stinker at a really important business meeting.
Other than bad lending rates, no employment prospects (*snif snif*), and higher bills, you might also have hard time renting too. What landlord would want to rent to someone who can’t pay their bills on time? I don’t know about you, but it seems like a bad investment idea to me having someone living in a place who can’t even pay up.
All is not lost, however. There are ways to improve your credit score.
Fine, no leaving you in the dark here. Look below for some suggestions:
- Have a high credit to debt ratio: The higher this ratio is, the better. You can easily call your credit card company to raise your credit limit. If they deny you this time, try again later. Eyes on the prize, people.
- Pay your bills on time! Seriously, don’t make me come over there…
- Stop checking your credit score all the time: You know that thing called patience? Every time you check your credit score, it might lower it. So wait a while before you check it again.
- Use your credit: Believe it or not, if you don’t apply for loans or use credit cards, your score lowers. Yeah, weird.
I’m curious, what’s your credit score? And most importantly, how has your life improved/sucked as a result of your credit score?