What Is the Importance of Having a Good Credit Score

Good evening,

Last week I discussed what exactly is a credit score and how to check it. I did not explain the importance maintaining a good credit score.Your credit score is based on your credit report. Your credit report is a record of your credit history from banks, credit card companies, collection agencies, and governments. Here are five important things to know about your credit score:

1. Your credit score determines the cost of future purchases. 
2. It takes a long time to improve your credit score once it drops.
3.  It is almost impossible to put a bad credit score behind you. 
1. There are set years on how long things stay on your credit report.
4. It influences what car you are going to drive and the place you will live in.
5. The amount of money you owe, your payment history, the length of credit history, credit mix, and new credit all affect your credit score. 

FICO Credit Score Graph in Comic Form

Lenders will look at your credit score when they are figuring out how to price the products they are selling you. If you are purchasing a car, you will most likely need to apply for a car loan. The bank will figure out how much of an interest rate they will charge you. The higher the rate, the bigger of a risk you are. Therefore, in the long long, maintaining a good credit score will save you thousands of dollars.

Works Cited

Konsko, L. (2014, October 13). 5 Reasons Your Credit Score Is More Important Than Your GPA. Retrieved November 3, 2015



Weliver, D. (2011, January 25). What is a Credit Score? Understand and Improve Your Credit. Retrieved November 3, 2015.