When you think about your credit rating, you may think its importance when you apply for a new loan or a credit card. Of course, these are two important areas that do play a major role in your finances, but credit ratings affect more than your ability to borrow money. Here are some of the other reasons to keep tabs on your credit rating besides borrowing.
Faster Identification of Identity Theft Issues
Identity theft and related fraud are significant and growing issues. These are criminal activities that affect many people each year. They cause unnecessary stress and grief from problems that may take years to resolve. When you use a credit risk monitor and other tools to keep tabs on your credit reports, you can more quickly and easily identify a potential issue that requires your attention. Remember that identifying these issues sooner may help you to keep related stress at a minimal level.
Qualification for Great Housing
Regardless of whether you are buying a new house or renting a home, your credit plays an essential role in the home or apartment that you will qualify for. While your housing affects your budget and your lifestyle, it also affects your exposure to crime and your safety. The quality of schools that your children attend is affected by the location of your residence. In addition, your commute time, your access to stores and medical services and more are directly impacted by the location of your home. You need great credit scores in order to more easily qualify for the ideal home for you and your family to live in.
The Ability to Obtain a Better Job
Employers commonly review the credit score of qualifying applicants before they extend a job offer. This may be to ensure that the individual is not under unnecessary stress that may otherwise affect the individual’s ability to do quality work. It may also be to ensure that the individual can manage his or her finances responsibly. This may be particularly important if the individual is being hired to work in a financial position in the company.
Maintaining a great credit rating is essential to many aspects of your life. Good credit scores have a positive impact on your finances, and they also play a role in many other essential areas. A smart idea is to review your credit score annually so that you can determine which steps are necessary to improve your scores going forward.
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