Everyone knows that a poor credit score costs you money by raising your interest rate on a loan. And if your score is too low, it can even cause lenders to deny you a loan.
But what if you have no debt (or are working toward that goal) and plan to never borrow again? Does your credit score matter then?
Yes!
First of all, plans can change. If one day you find yourself needing to borrow money, you’ll be glad that you maintained a respectable credit score.
But even if that day never comes, a good credit score is valuable for other reasons:
- Insurance companies often use credit scores to determine premiums
- Landlords commonly use credit scores to measure how responsible a potential tennant is with their money
- Employers frequently use credit scores (& entire credit reports) to learn about a candidate’s private life and their level of responsibility
So maintaining a good credit score is a worthwhile endeavor. But you don’t have to go into debt to ensure a respectable credit score.
We’ll discuss ways to build a strong credit score in an upcoming blog article. Meanwhile, for resources to learn more about your credit score visit the Consumer’s Toolbox page in the IRFCU Vault section of our website.
