Think Your Credit Score Is Not Important? Think Again.

Credit scores are an important part of your everyday life. This may be hard to believe for some of you as credit scores can seem like just some abstract concept – a number that has little to do with day-to-day living.

However, nothing could be further from the truth as your credit score affects nearly every part of your life, especially as you start to get older and look to buy or invest in some of the nicer things in life. For those of you who still don’t believe that credit scores are important, here are a few reason why they are.

One, your credit score (also known as your FICO rating) represents who you are financially as person. Yes, it’s only a series of three digits, and you may be saying to yourself that three digits can’t fully represent the financial you. And while this may be true, creditors cannot take the time to get to know each and every detail about the financial you.

According to the website LoansAndBadCredit.org 8 billion people live on this planet and while they all don’t do business with your bank, creditors don’t have the time or man power to give in-depth reviews of even a fraction of a fraction of a fraction of those 8 billion people. Simply put, a FICO rating is the easiest way for a creditor to know who they are dealing with.

And two, knowing who they are dealing with leads to all sorts of opportunities or lack thereof for you. Now, everyone knows of at least one or two people who were denied something because they had a poor credit score. Whether it was an apartment, a car, a loan, or something else, people can’t live the life they’d like to often because they can’t afford and haven’t shown that they are reliable people to lend to.

You score is important because more than likely you’ll want something in the future that you can’t afford in the present. And if you don’t have a good credit score then you can just forget trying to get it. Businesses don’t provide products or services unless they know they are going to get paid for them.

An easy way to find out your credit score is to go online and Google one of the three major credit score providers. Now, be careful though, because some offer what is supposedly a free credit report only to give you a bit of your credit information and then demand money in order for you to get it all. By law, you are legally entitled to one free credit report per year.