There are so many personal finance articles out there about how to improve your credit, but why does it actually matter? I’m a firm believer in the fact that a number can never define your worth- your weight on a scale, the amount of money your make, your GPA from school- none of that reflects your character. A credit score attempts to measure how risky of an investment you are to potential lenders. It takes into account whether or not you pay your bills on time, and how much debt you currently possess. Again, having bad credit does not mean you are a bad person, but it can have severe effects on your personal life. This article by Brian Martucci at Money Crashers illustrates what a bad score can mean for you:
-Getting approved for any sort of loan can be difficult, including ones for cars and homes
-You will face higher rates and more restrictive terms on loans you do get
-You may face trouble renting an apartment
-Potential strain on personal relationships