What Your Credit Score Affects

Your credit score can have an impact on a lot of different aspects of your spending life. It is not just a gateway to a loan. It tells a lender whether or not to give you the loan you want. A bad credit score can make it nearly impossible to even get a credit card to repair the damaged credit score.

Your credit score also impacts the rate you get on your loans. A high score will allow you to take out a loan at low rate, because the bank knows you are not high risk and are going to pay back your loan in full. If you have low or damaged credit, you are going to get a much higher interest rate because this warns the lender that you may be a high-risk investment.christmas inflatables canada

Recently, credit scores have taken on a whole new aspect. It is no longer just banks and lenders that want to know your credit score to make sure you are financially stable. Landlords, car insurance providers, and employers are some of the categories that are beginning to put more importance on your credit. No longer tied just to your loans and finances, your credit score is now being used by companies and institutions to know what kind of money-minded person you are.