Know the score. I am not talking about knowing the score of the sporting event you maybe watching. I talking about knowing your credit score. Knowing your score is important part of simplifying your personal finances. Having a high score will usually help you win the game depending on the sport you are playing. Having a high credit score will also help you win personal financial game and helps you simplify your personal finances.
Here are ways that a high credit score will help you win the game.
Better interest rates
Knowing your score enables you to know what interest rate you should receive when you apply for home loan, car loan, or credit card. The higher the score the better interest rate you will receive. So knowing your score provides you with some bargaining power when it comes to interest rates.
Better approval rate
Not only will you receive better interest rates if you have a high credit score but you are more likely to get approval for your loan request. Having high credit score is more important than the amount of income you earn. I say this because before your loan goes to the underwriting process your credit report is pulled. If your credit score is low, your loan request will not even make it the underwriting process.
Lower insurance rates
Yes your driving record and claims history is important factor that determines your insurance rate. But your credit score is just as important. If you have a high credit score you will receive a lower rate if everything else is in order. So your credit score can impact the insurance rate you receive.
Improve employment chances
Yes your credit score can determine if you receive that next job offer. If everything else is equal and your credit score is lower than the other candidates, you maybe facing an uphill battle to land the job. With a tight job market, your credit score can be the determining factor if you get the job or not. Potential employer will look at your credit score to see if you are fiscally responsible.
Pull your credit report to review your credit score. Look to see what your score is and look for ways to improve your score. You want to do this prior to applying for a loan, applying for a job or purchasing insurance. In the financial game the highest score always wins.
Remember take one step at a time to simplify your personal finances.
This post was featured in Money Hacks Carnival # 102