Fun fact – more than 69% of surveyed respondents agreed that a high credit score (or rather financial responsibility) is a vital consideration when searching for their true love, according to an article on Bloomberg. This means that your chances of finding love could be determined by whether you chose to pay last week’s loan payment on time or not.
Do you think that’s absurd? You’ll be surprised by the grip that your credit score has on your life. In a nutshell, your credit score can draw the line between achieving and failing in your financial goals.
Here’s an overview of why your credit score matters:
Landing Your Dream Job
The job market is almost always saturated, increasing the scope of competition for the rather limited jobs. This factor gives HR managers a hard time during talent acquisition, and simple flaws could mean the end of your dreams. Unfortunately, a flaw such as a low credit score can be a sign that you are a financially irresponsible person.
However, this is not to say that the choice to disregard potential employees due to a low credit score is unfounded. It trickles down to job specifics. For instance, no one would ever want to hire an accountant with a low credit score. If they had trouble being committed to their personal finances, what will happen to the business?
Getting A Personal Loan
Lenders who deal with different personal loan options will work overtime to tailor their services when helping you choose your loan to mitigate the risk that you might default. In case you have a low score, a lender will typically consider you as a risky borrower. To protect their interests, they will either offer you a registration loan at high interest or fail to offer you the loan.
This may also extend to getting a business loan, especially if you own a business whose financial accounts are the same as your personal account. Although there is an alternative to getting loans that don’t look into your credit score, the rates of such loans are in no way comparable to the favorable rates that normal personal loans call for. Since loans are lifesavers in times of dire need, a low score will lower your backup plan for finding the best loans. However, there are advisable ways to help you increase your business credit score that will not only grant you a larger amount of fund but will also give rooms for favorable terms.
Landing Your Dream Apartment
That’s right, your credit score can also determine where you will live for the next few years or so, according to The Week, especially if you are searching for an apartment in highly competitive markets. Landlords will typically need to look into your score to determine whether you are financially responsible enough to commit to making rent payments.
Since the security deposit for renting arises as a contingency plan for the landlord were you to have trouble offsetting your rent, some of them will waive it off your initial costs during the tenant screening process. Needless to say, a high credit score doesn’t guarantee that you will be approved for the apartment, but it does solidify your chances.
Enjoying Valuable Credit Card Benefits
A healthy score opens doors to enjoy common credit card benefits such as qualifying for a higher loan limit. This benefit results in a domino effect as a higher credit limit improves your credit utilization ratio which further improves your score. That aside, you will get to enjoy premium credit card benefits such as travel benefits and reduced interest rates.
In addition, discounts such as balance transfer deals and no introductory rates will apply to most people with a healthy score. As a result, this will improve your chances when it comes to paying down the loan. For an easy time, be sure to pay down your balances while these discounts last.
Perfection is not a necessity when building your credit score, but this doesn’t eliminate the pivotal role that your score plays in your life. Gunning to build your credit score could open doors to countless opportunities. Who knows, you might find love while doing it.