Your credit score can affect your financial life in multiple ways. The biggest is borrowing money.
If you need a car loan, want to open a credit card, or even buy a home, lenders are going to look at your credit score. Now, those aren’t the only things they consider. Your income, debt, assets, and employment history can also come into play. But credit scores can trump those things when it comes to getting approved for a loan or credit card.
Not only that, but your credit scores can also influence the interest rates you pay to borrow. A higher credit score can translate to a lower interest rate and vice versa. When you’re borrowing, even if it’s a small amount of money, you want the lowest interest rate possible. This keeps more of your money in your pocket since you’re paying less in total interest over time.
Credit scores can also affect other parts of your financial life. For example, if you’re trying to rent an apartment, the landlord might perform a credit check. A poor credit score could be a deal-breaker for getting a lease.
In addition, you might have to undergo a credit check if you’re trying to get a cell phone or utility services in your name. Employers can also pull your credit, with your permission, if you apply for a job.
A second chance banking account can always help with improving your credit and help you get back on track financially if need be