Your credit score is extremely important and in a way, it almost helps to determine how easy your life is going to be financially. At least in some small way, of course it isn’t the only factor though. This may sound a little intimidating, but hear me out. Your credit score will play a crucial role whenever you decide to take out a loan.
Thinking of applying for a new credit card? Lenders will assess your credit score. Got your eye on a brand new car? Having a high credit score will open you up to the best deals. Even if you’re in the market for a house, your credit score will help you get a better mortgage deal.
Details of your credit history are kept on record by credit reference agencies and this information is accessed by lenders whenever you apply for finance. Your personal profile will contain information regarding how you manage your credit. So, they’ll be able to see if you make your payments on time or if you’ve ever missed a payment.
Lenders will also pull your address from there to make sure that it matches what was specified on your application. Missed payments, defaults and things of that nature will have an adverse effect on your profile and cause you to be seen as more of a risk.
It’s not all doom and gloom though because even if you have less-than-stellar credit, there are usually brokers and lenders out there that can help. For example, if you’re looking to buy a car, then you may be eligible for a range of popular PCP deals, even if your credit score isn’t perfect.
Maintaining a healthy credit score isn’t as complicated as you might think. If you follow the steps detailed in the infographic below you’ll be well on your way to improving your score.