Aim to reach a high score – not just for tests and games, but the credit score. Having a bad credit score could cost you a lot of money.
Without a good credit score it will be harder for you to get:
- a loan, mortgage, credit card
- a good interest rate when you’re borrowing money
- rental housing. A lot of landlords perform a credit check on applicants.
When you have a good credit score, you are telling the lender that you pay back money. You are responsible.
On the other hand, when you have a bad credit score, you are telling the lender that you don’t pay back fast enough, or worse, you don’t pay back at all. Even if you can convince them in interviews that you are responsible, the credit score tells the hard truth. That you’re not.
It’s important to build a good credit history. Start by obtaining a credit card and make sure you pay back the balance every month. That will be a good start to build a credit history and good credit score.
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