It doesn’t matter how old you are or whether you are poor, rich, or anywhere in between, you need a credit score. Why? Because as an adult, everything you buy and need tends to revolve around your credit score. So today we want to talk about how a credit score impacts your life and what a credit score is.
Your credit score can impact your:
- Interest Rates
- Down Payments
- Eligibility to qualify for services or products.
A few examples of companies who use your credit, at least in part, to determine these things include insurance companies, car dealerships, credit card companies, mortgage lenders, and utility providers for gas, water, and cell phones.
Even when you apply for a job, as part of the background check, many companies will also check your credit. If you have bad credit, it may keep you from getting the job or even a promotion!
What exactly is a credit score? It is a very complicated mathematical algorithm that uses your personal and financial information to calculate a “score” that represents your “credit worthiness.” So the higher your score the better your credit rating, and vice versa.
If you want to know more about credit scores check out our other blogs:
Remember, you can always call us if you have questions and if you need help with credit counseling. Our consultations are FREE. So don’t be afraid of the unknown and get answers today! (480) 907-6088 or click on the “Schedule a Consultation” button!