Your credit score matters

Your credit score tells everything about your finances and therefore, becomes important for many reasons. First lenders constantly look at your FICO score and other credit information before even they delve into your credit history. Based on your credit score they set the rate they are going to charge you for credit cards, lines of credit, mortgage, and even for a car loan. A lower score to them raise a red flag and they may consider you as a high credit risk prompting them to charge you more or to reject your application. Some set lower borrowing limits due to lower credit scores.

Secondly, your credit score not just limited to lenders. If you tried to rent a place recently, you may have noticed that property owners are using your credit information including your credit history and FICO score. This is another reason to pay attention to your credit score. Based on your score as well as payment history, they may set the monthly rent and the amount of deposit you need to give to them to rent. It may even result in landlords denying your application to rent. Late payments not only affect your FICO score but also give reason to landlords to charge you more for the risk they intend to take.