4 Reasons You Shouldn’t Ignore Your Credit Score

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Your credit score is more important than you might realize. 

Credit is important, and it can impact many areas of your life. While it takes time and effort to build your credit and raise your credit score, doing so can put you on the road to greater financial success. But if you ignore your credit situation, you may set yourself up for future financial concerns and it could take longer to improve your score later in life. Here’s why you should pay attention to your credit score now.

1. It takes time to build credit

You’re wasting valuable time if you spend years not caring about or checking in on your credit score. The age of your credit history is one factor that makes up your FICO® Score. Having a longer credit history could help you increase your credit score. Creditors like to see that you’ve been managing your credit well for a while, and a lengthy credit history can help show that.

2. A higher score gives access to better interest rates

Your credit score directly impacts the interest rates you qualify for when you need to borrow money. Whether you need to take out a car loan or decide to purchase a home, a lower interest rate could help you save money by reducing the total amount you pay. It’s beneficial to care about your credit score now, so you have better odds of getting approved for a lower-cost loan when the time comes.

3. You may need to borrow money during an emergency

Even if you have a solid emergency fund, there may come a time when you need extra money, whether for an unexpected medical bill, house repair, or a costly trip to the vet. If you need to apply for a credit card or a personal loan, you’ll want a good credit score.

A better credit score can improve your approval odds and help you secure the funding you need to escape a difficult situation. Don’t delay caring about your credit score, because you never know when a financial emergency may occur.

4. A good score can help you qualify for a better credit card

There are many credit card options, but not all cards are available to every consumer. Some of the best rewards credit cards with attractive benefits and a higher earning potential are available to consumers with good or excellent credit. Those with poor credit or no credit may have fewer credit cards made available to them and those cards may have fewer perks.

It can be beneficial to care about your credit score and work to improve it, so you have better odds of getting approved for a better credit card in the future. With a better card, you may be able to earn more rewards and access more valuable benefits that improve your life and save you money.

Don’t ignore your credit score

Your credit score matters. If you checked yours in a while, here’s how to find out your credit score. Don’t delay establishing your credit or working to increase your credit score. With a better credit score, you’ll be more likely to qualify for better financial opportunities in the future. For additional financial guidance, check out these personal finance resources.

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