Credit is important. It’s as simple as that. Credit can help determine your interest rate for a personal loan, a mortgage, a car loan, and can even determine your eligibility to rent an apartment.
Ultimately, your credit will control how much you will pay for loans. The better your credit, the smaller your interest rates will be and the less money you will spend. The worse your credit, the more money you will spend.
But credit doesn’t just decide your interest rates; it also signifies how you use your money and how financially responsible you are. It tells those who know your credit score whether you pay your bills on time, how responsible you are with your credit card, whether you make loan payments on time, etc. This one number holds a lot of information.
According to freecreditscore.com via CNN, many people won’t marry someone with bad credit. Of the 1,000 people polled, it was found that 20% of men and 30% of women would follow suit and wouldn’t marry someone with bad credit.
Not only does having a spouse with bad credit make it more difficult and more expensive to do something like qualify for a mortgage to buy a home, it also shows the potential spouse’s money spending habits.
Money is one of the biggest reasons why couples fight, so naturally using a credit score, a number that in some ways illustrates how financially responsible someone is, as one of the criteria when choosing a mate will help curtain fights some about money. After all, it doesn’t matter how much someone makes if they don’t know how to spend and save it well.
But remember that a credit score isn’t permanent. With every financial move you make (or don’t make), your credit score changes. So just because someone has made poor financial decisions in the past doesn’t mean that they will never be eligible for a low interest loan.
There are ways to build and improve your credit. Always pay bills on time, pay off your credit card in full every month, make loan payments on time, and you will be able to raise your credit score.