One would think getting and maintaining a good credit score ends with your education but life has a bigger plan for you as you realize you having a consistent credit score which is good, is important in your finances. You’re young and probably have no use for loans right now but it is paramount that your financial credit score if very good as it makes it easier to get what you may need later on in life. Getting a good job, taking loans from the banks/schools, having a home, negotiating for better interest rates, buying a car and many more, all require you to present a good credit score in order to enjoy these benefits.
…and it’s not too early to start…
What is a Credit Score?
A credit score is a single number that represents how dependable you are from the view of someone who would lend you money. Basically, you have to prove yourself as an individual with reliable financial history and this can be done by having a high credit score.Your credit score can be known through credit reporting agencies, which are businesses whose job is to collect information about your financial behavior. They are most concerned about three major things which are:
- The money you’ve borrowed
- The amount of money you owe
- Whether you’ve been making your payments
What Do You Need A Good Credit Score For?
It’s easier to get a loan whether a mortgage loan, credit card, or an installment loan. Also, you tend to get a lower interest rate which a good credit score.
It can be easier to get (or keep) a job as some employers ask for and are allowed to check your credit scores. Any red flags in your credit history could potentially cost you your job.
It can help you launch your dreams into the entrepreneurial world as your personal credit history may be all you have to go on when you need to borrow money for a embryonic business.
These are some of the few reasons why you need a good credit score and history. Again, it’s never too late to start.
Have a lovely week ahead.