One of the most disturbing things I hear often is the statement being made by people:
My Credit Score Went Down, But Who Cares?
This cliche phrase sounds more like saying “Hey, we are all going to die some day” and “I am waiting for Govt.. to bail me out.” Although there is some degree of truth in those sentences but at the end of day it amounts to denial of responsibility.
In this post I wish to discuss the parts of your life that get very much affected by your credit score. It is not a small part. It affects the whole you. It hits your home, the card you can drive, the things you can buy and even the jobs you can get into. All spares of your life get affected by credit score.
Impact of Credit Score on Your Home
If you ever want to move out of your parents home and get a decent accommodation of your own, you need a pretty good credit score. You will not be taken seriously by any landlord, mortgage broker, banker or a realtor(real estate professional) if you don not have a decent credit score. so next time when your citi bank credit card bill arrives.. pay it on time for the sake of good future home.
Impact of Credit Score on Your Car
If you don’t care about your credit score, don’t complain when you have the same car payment as your neighbours while he drives a new Lexus and you own that rusting old Chevy. This might be an extreme example but missing one or two payments can cost you 4 , 5 and some times 8 percent on your next car loan. so be careful and pay on time.
Impact of Credit Score on Your Job
If I can be really true with you, most business owners and companies in general don’t know you from your ancestral roots. People can be really impressive as well as deceptive in the interviews they give. But can they be really trusted with company’s valuable resources and money? Although, they won’t admit publicly but increasing numbers of employers are now relying on credit scores to establish credibility of their employees. especially those with financial and managerial responsibilities.
Credit Score & Your Ability to Start a Business
Millions of pep fail to achieve their “American Dream” of starting and owning a business of their own. Main factor in not getting there is non-availability of credit or too expensive credit. If you have a good credit score, this means you will have access to the sizeable working capital in form of easy credit. For qualifying for any business loan, your credit standing is the first thing your banker will check. So, If you have a dream, then protect your credit score from early collage life to protect your dream.
I do not mean to be exhaustive in this post. I am just trying to scratch to surface of what’s beneath a skin of bad credit score. I just want to warn you that your bad credit score will follow you everywhere and a missed payment will always come back to haunt your years after that. Please subscribe to this blog to get notified about my next articles by email. It is free and might help you learn some good tips.
Have a nice day.
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WebbieGurl says…
I dont know about my own credit rating as I dont have credit cards… i only use debit card and i also dont have mortgage or something big that i borrowed… But basically the reason why i dont borrow is to avoid risk. I am a professional certified public accountant that always count the interest of anything and no matter how the banks or credit institutions try to make the loan more appealable, the fact that i know how to compute everything, i always arrive at very high and risky figures in the long run making me decline in anything…
WebbieGurls last blog post..Aspirations: I Wish To Do This, I Wish to Do That! That’s what you get when I am in a contemplating mood…