The Growing Importance Of Credit Scores

Posted by on June 20, 2019 in Stuff with 1 Comment


Your credit scores and the underlying history behind that score are some of the major parts of your life once you get much financial. Your credit scores follow you forever and it will play a very huge role in many of the financial decisions and situations you encounter throughout your life. Many people live in the blindness that credit score only matters when you go to take a loan but it goes far beyond that. Credit scores can also impact your insurance and other decisions such as getting a cable TV. There are many ways to increase your credit score by 100 points in a night.

Credit reports and credit score

Many times in your life you will see that these terms have been interchanged. The importance is to understand the difference between the two. Your credit report is actually the detailed history of your credit information. It also defines many other things about your accounts such as the information about your credit, delayed payments, bankruptcies, and identity theft.

Your credit score is just a simple three digit number that is simply based upon the information that is provided in your credit report. After taking into account the information and data in your credit report, there is a mathematical formula that is applied to determine what your score should be. There are different bureaus that have different scoring systems. In order to keep on top of your credit score, we recommend that you use Smart Credit's credit monitoring services.

Importance of credit scores

We all know that the importance of credit scores goes beyond the need for loans. It will obviously be more difficult to find a bank or credit card company that will lend you money if you have a low credit score. But it can affect more than you think. It can affect everything from insurance rates to employment opportunities.

Whether you are purchasing a house that you want to insure or you are buying insurance for your vehicle, a good credit score can save you thousands of dollars in your insurance by assuring you better rates. If you have a poor score then that will cost you an additional hundred dollars each month on premiums but if you have a good score then that can also qualify you for a discount.

Also to be noted that employers can check your credit. This is an increasingly common but a little controversial topic and practice that is taking place as the employers check the credit of new employees. The argument towards this can be that the employers can check the credit history to determine the loyalty and responsibility of the employee. There can clearly be history that the bad credit history is something completely out of the employee’s hands but it is still something that should be kept in mind before applying.

There can be chances that you may have to pay to get the complete history of your credit score. But it is still something that should be kept in mind. It can make a lot of difference of you getting that loan or mortgage amount.

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