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How Your Credit Score Affects Your Reputation

By Ruth Racey
Published: Wednesday, March 31st, 2010

Not all consumers are able to take note of the fact that their respective reputations do not only involve how they deal with other people. The fact is that, one of the main reputations that every consumer must have is their reputation to pay of their bills, and be creditworthy. This is where your credit score comes into importance. Remember that your credit score is actually one of the main indicators that lenders will see if you are worthy of getting your loans or not. 

In this case, your credit score actually affects the way you transact your finances with other people. Here are some of the most important ways on how your score can affect your reputation: 

  • The way you get your loan approved
    One of the first things that lenders would look at when you are applying for a loan is your credit score. In this case, your score actually affects your reputation of being able to pay for the loan that you are going to get or not. Therefore, having a low score would make your reputation to pay badly, while having a good score would make your reputation to pay for the loan look good. In this case, it will actually be the difference between getting your loan approved by lenders or not. 
  • Getting a rented house
    In addition, whenever you are looking for a place to stay for long term, the best thing that you can do is for you to look at renting a house. However, the landlord would first look at your credit score before he/she will be able to lend his/her place to you. In this case, having a low credit score would make your reputation to pay for your rent bad. However, having a high score would make you have a good reputation to pay for the rent. In this case, it also determines the difference between getting a house rented or not.  
  • Getting a brand new car
    Also, getting a new car to drive requires high scores to be shown. This is because of the fact that a car loan is a high risk loan, wherein only people with high scores are likely to get this kind of loan. Whenever you have a low score to show, it makes you have a bad reputation of paying loans. This makes you fail to get a car loan. 
  • Having lower interest rate payments
    High or low interest rate payments are also largely determined by your score. Having a high score would make an impression that you are a low-risk debtor, for you are able to pay for your bills and dues on time, does not accumulate debt, and have less chances of filing bankruptcy. However, having a low score will surely make you have a reputation of being a bed debtor, in which you have more chances of failing to pay for your loans and filing bankruptcy. That is why people with high scores make low interest rate payments, while people with low scores makes high interest rate payments.

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