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Credit Score News, Tips & Advice « Credit Scores > Credit Score Tips > What’s the big deal with keeping a good credit score?

What’s the big deal with keeping a good credit score?

By George Hauser
Published: Thursday, November 4th, 2010

There are three major credit bureaus in the US; the Transunion, Equifax and Experian. It is through these credit bureaus where we can obtain our credit score. Though all three bureaus work in the same nature and purpose, they have different standards on what a good and bad credit score is. For you to know how well your credit score is doing or to determine whether you need to get it fixed then get in touch with a credit bureau of your choice.

There are three digits which comprise our credit score and the figures in it will determine how qualified we are for a loan or new credit card. When we are not too good in managing our finances then this will be reflected on our score.

The importance of having a good credit score is that it gives us the higher chances of getting approved of a loan or a credit card. Lenders will not have second thought approving you for you have given them a positive impression as reflected on your credit score. When you have a bad credit score you will have thin to no chances on the loan or credit card you are eyeing for. So the basic step to a loan or a credit card is a good credit score.

While lenders and credit card companies rely on the figures they see on your credit score, employers nowadays do checking as well. A credit check is done on an applicant and when it had been found out that the credit score and the credit history are poor then they lose their chance of landing the job. Of course this is seen as a violation against any person’s right to employment but employers believe that there is nothing wrong doing a background check.

For them, they are just protecting the safety of the company. A person who is in a deep financial trouble may be tempted to steal from the company or from his co-workers. Sounds very discriminative, but it is logical too. But then again more people are against the practice. They insist that the credit score or background of a person has nothing to do with him as an employee. But the government had made some steps to stop companies from having an access to applicant’s credit reports.

If you want to have a good credit score for either the purpose of getting a job of approval for a loan, here are some reminders for you:

Make sure to keep up with your due date. If you were not able to make the payment on the assigned date then just make sure that thirty days won’t pass without settling your bill for if you failed to pay off after thirty days after the said due date then the late payment will already be reflected on the report and will bring a negative impact on the credit score.

Credit score could be your passport to a new car or home renovation so make sure that you keep these reminders in mind.

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