Why Your Credit Score Matters
Credit scores are a crucial factor weighed in on some circumstances. Do you know all the scenarios in which your score plays a role?
The most important according to the American Consumer Credit Counseling is:
1. Buying a home - Your credit score impacts your ability to take out a mortgage for a home. If you have poor credit, a lender may deny the loan.
2. Renting an apartment - Landlords have the option to check a potential renters credit score when considering an application. A prospective tenant with a low credit score may be required to have a co-signor on the lease or may even be denied.
3. Interest rates - Banks often agree to approve loans for those with low scores. But in most cases, they come with higher interest rates.
4. Homeowners insurance - Your state may allow your credit score to determine how much you'll pay in premiums for home insurance.