What You Don’t Know About Your Credit Score Can Hurt You: A blog about the importance of knowing your credit score.

You may have heard the old saying that “ignorance is bliss.” Unfortunately, I am here to tell you that ignorance is also financially dangerous. Many people don’t know how to use their credit and wind up paying higher interest on loans or being denied loans and other forms of credit. The first step to ensuring you are using your credit correctly and that your score reflects it is taking the time to learn about your credit score. This post provides an excellent introduction to what this mysterious number is all about and will help you learn more!

Here are the primary reasons it is essential to know your credit score.

You qualify for loans with lower interest rates

The most apparent reason to know your credit score is that it affects your capacity to receive loans and better interest rates when borrowing. Finding out how much interest you should pay on loan in advance may be as simple as knowing your credit score.

You understand better what affects your score

Actively monitoring your credit may help you understand how they fluctuate. To put it simply, this is critical since many individuals don’t realize how big of an influence certain occurrences might have on their credit score.

Insurance premiums

A person’s credit score often influences insurance premiums whether they’re buying a car or property. Most insurers produce an “insurance score” based partly on your credit score and other criteria. Insurance prices may rise significantly if you have a poor credit rating; conversely, you may be eligible for a reduction if you have an exceptional credit rating.

Employers may do a credit check on you.

Employers are increasingly doing credit checks on potential new hires. Employers feel that credit history may be used to establish accountability. Even if a person’s terrible credit history results from circumstances beyond their control, it is essential to remember this fact nevertheless.

You qualify for credit card rewards

Many credit cards for customers with good credit scores qualify for reduced interest rates on credit cards and even have 0% APR introductory periods. 

You find it easier to get an apartment

Landlords may be reluctant to rent to you if your credit history reveals a history of late payments making you a risky endeavor.

Your credit score has a greater impact on your finances than you would believe, so it’s crucial to know what it is and how to improve it. If you don’t know your credit score, it’s a good idea to have it checked out as soon as possible.