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Credit Score: How it will affect you

By Ruth Racey
Published: Monday, August 16th, 2010

The world has become extremely credit based. If you do not have a good credit score it will limit you in the things you can do and get in your life or your families life.

Having a poor credit score you will lessen your chances of getting a loan for a house, or if you do, it will be for a smaller home or for a very high interest rate. They will only loan you what they think you will be able to pay back. The better credit score you have, the more a financial institution or credit lender will trust you and there fore approve you for a better loan.

If you have a low credit rating you will be unable to get approved for a car loan or vacation loan or a loan for furnisher.  Even for these smaller purchases, a financial institution or credit lender will want to be assured that you will be responsible enough and have the means enough to be able to pay back your loan in the time frame they have laid down for you.

Another thing which can be impacted by your low credit score would be loans for education. Sometimes this can be affected if you are getting student loans from someone other then your government. If you are applying to a bank or credit lender for this type of loan they will want to be sure you have your own financial backing to be able to repay the loans in the future.

Most people are surprised that this will actually matter when you are a student because student don’t actually that much money, but it will, which is why it’s best to get loans from your government if you can.

Another thing which can be impacted by a low credit score is obtaining a position of employment. Most people will again be surprised to learn this, but some companies will check the credit history and report of potential employees to make sure that they are responsible with money and responsible with paying bills on time.

This will be especially true if the place you are applying to is a company that deals with money in which you will be handling money or budgets. A company won’t put you in charge of money matters when you cannot even handle your own.

So, now you can see how important you credit score is, you will know to take better care of it in the future, in insure a better future for yourself.

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