Why credit score important?

Your credit score is a crucial number that impacts many aspects of your financial life. Here’s why it’s important:

1. Lending Decisions: Lenders, such as banks and credit card companies, use your credit score to evaluate your creditworthiness. A higher score indicates that you are more likely to repay borrowed funds, making you a lower-risk borrower. This matters when you apply for loans, mortgages, or credit cards.

2. Interest Rates: Your credit score influences the interest rates you’ll be offered on loans and credit cards. A good score can help you qualify for lower interest rates, saving you money over time. On the other hand, a lower score may result in higher interest rates, costing you more in the long run.

3. Access to Credit: A strong credit score gives you better access to credit and more favorable terms. It can help you secure higher credit limits, better rewards on credit cards, and approval for financing without requiring a cosigner.

4. Rental Approval: Landlords often check credit scores as part of the tenant screening process. A good credit score can make it easier to secure a rental property, while a poor score might lead to rejections or requests for a higher security deposit.

5. Employment Opportunities: In some industries, employers may check credit scores as part of the hiring process. While your credit history is not a direct reflection of your job performance, it can be considered in positions that involve financial responsibilities or access