Why Should I Care About My Credit?
Build Credit, Why Credit
These days, it seems like there is more and more pressure on us to have “good credit”. Everywhere you turn you see an offer for a free credit check. So much value is placed on that almighty credit score… but why?
All kinds of companies use your credit report as an indicator of how responsible you are with finances and borrowing. The funny (and surprising) thing is, you don’t even have to be applying to borrow anything to have a credit check demanded of you.
Your credit report has kind of become your “report card of life” and will determine what doors will be open or closed for you. The better your credit rating is, the more options you will tend to have and the fewer hoops you’ll need to jump through to do the things you want to do in life.
Common, unsurprising examples include getting approved for things like:
• Credit cards loan or line of credit
• Car loan
Understandably, lenders of these products want to be sure they will get their money back from you should they decide to lend it to you. Your credit score and credit history helps them determine the level of risk you represent and so they base their decision to lend to you accordingly. Even when approved, your credit rating will determine the interest rate you are charged on that credit.
More recently, other companies and places are requesting credit checks as part of their screening or application processes. These include:
• Landlords and Property Managers
• Cell Phone / Internet Companies
• Insurance Companies
Many people are surprised when they are asked by these companies for a credit check; and they are even more surprised when they are denied a service because of poor or low credit. Again, your credit history is being used more and more often to determine how responsible you are with your finances, which can be interpreted in any number of ways by these different companies. If you have low credit, you can have significant difficulty in acquiring the best options for even day-to-day items, which in turn can make it challenging to move up in life and improve your situation.
So taking care of your credit should be a top priority for you now and moving forward. Budget well, check your credit often and make adjustments to both as necessary. There are a number of online services that offer free access to your credit report; and others that provide it for a fee. Similarly, there are companies and services that will help build your credit and even manage your budget. Do your research to make sure you are getting the best information and best services for your situation and for your future goals.
Building good credit takes time so if you don’t have it already you need to make a plan to build it effectively. You never know who will ask to see your credit report or when, so it’s better to have good credit before you need it; than to need it and not have it.
The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
In October 2021, the LCB organization re-branded some of the services it offers under FrontLobby. Until this point, the LCB organization has consisted of two companies handling different services under the umbrella trademark of Landlord Credit Bureau. The introduction of FrontLobby enables each company to maximize its focus and impact. Read More
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