![]() If an employer sees that an applicant has a bad credit score, then he may be hesitant to hire them.Ĭredit score is important, because it follows you through life and will play a major role in important financial situations. Many jobs that deal with money require a responsible person to handle cash. They use your credit history to determine the responsibility of a person. A poor score can pave the way for increased premiums each year, and a good score can result in a discount.Įmployment Opportunities: A common, but a controversial practice that takes place today is an employer checking the credit score of potential new employees. Insurers create an “insurance score” which is mainly based on your credit score. Insurance Rates: For some insurers, credit score plays an important role in determining your premium for everything from insuring your vehicle to insuring your home. Your credit score can also affect insurance rates and employment opportunities. Generally, people think that a credit score matters only when applying for a loan or for a credit card. A lower credit score means a higher interest rate and this in turn will make the loan cost higher. Not only that, the credit score is the base to determine what kind of loan you qualify for, how much credit you qualify for and what your interest rates should be. The higher your credit score, usually it means a lower interest rate however it does not guarantee you'll get approved.Ĭredit scores are important, because they determine whether you qualify for getting a credit card, an education loan, a house or car loan, or a business loan. This will help them determine the type of loan you qualify for and the rate of interest you have to pay. It helps them infer the possibility of you paying back the debt, and this is based on your credit history. For instance, when you apply for credit, the lender will check your credit score. As long as you compare different companies, know the potential risks, and do your research, the advantages can outweigh the disadvantages.Ĭredit scores are vital parts of the financial life of a person.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |