Credit score and why having a high one is crucial

The following article highlights some reasons why should keep your Credit Score on the up and up.

11:11 30 December 2013

Nowadays, your credit score impacts heavily on your ability to borrow money. Financial institutions and other assortment of companies have this information on hand. So what is it? In a nutshell, it is a brief history of an individual’s financial history and impacts on the credit worthiness of the said individual. From that you can ascertain why it is important to have a good one.

When Securing Loans And Applying For Credit Cards

Institutions are skittish about handing out money and credits willy-nilly, so credit scores are the reference point of all financial institutions. Hence, a bad score makes it nearly impossible to access money, when you are looking to secure a loan.

When Dealing With Utility Companies

Bad credit scores mean that you have to make astronomical deposits in order to take advantage of certain services.

Employment requirements

If you are applying for a position with high financial responsibility, your credit score comes under intense scrutiny. Employers nowadays are very keen on these scores when you apply for certain positions and a low score make it difficult to secure them.

Housing

When you want to rent a house, the first thing they look at is the credit score.  When looking to secure a mortgage, bankers look at your score. In essence, all things to do with housing are dependent on how good your credit score is.

Insurance

A bad credit score when you are applying for an insurance policy means that you have to dig deeper in your pockets to pay the premiums. People paying auto insurance or home insurance and have a bad credit score will tell you of how harrowing it is. Basically, insurance companies will limit individuals that have low credit scores to only accessing high risk policies. In essence, you should seek to improve your credit score to lower the premiums you pay for insurance.