In today’s world, one of the most critical pieces of information you should know about is your credit score. It’s a significant number that lenders will examine that determines approval for a loan. With excellent credit, you typically get approved for better rates as well.
If someone asked, would you know what your credit score is? Individuals who are proactive with their credit can then take the necessary steps to improve or maintain it. Here are five reasons why you should check credit score often.
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1. You’re More Likely To Catch Mistakes
Taking some time to examine and check your credit score can help you identify possible glitches that could impact it significantly. Just two years ago, in 2019, there were over three million cases of fraud reported to the Federal Trade Commission. If you’re not checking your score often, you could get taken advantage of for months or years at a time without even realizing it. There can be no worse feeling than having your identity stolen, but checking credit only takes a few minutes.
2. Helps With The Interview Process
The way interviewing is done changed drastically in the last 10 to 15 years. Not only will employers want to know about your social media footprint, but they could also want to know if you’re good with money. If you know you’ll be applying for jobs later in the year, trying to fix your credit situation could give you a much better chance to land your dream job. Expecting this as part of a job interview is now the norm.
3. Get Better Credit Cards
In 2021, the average credit card debt for families was over $6,000. One of the biggest reasons for a high balance is having a credit card with a high APR and only paying off the minimum balance. That’s a recipe for quick credit card debt. By knowing your credit score, you can take proactive steps to increase it, and ultimately, get better credit cards.
Top-rated credit cards are hard to obtain if you have a poor credit score. With better creditworthiness, you can get cards that often have excellent low or zero introductory APR rates. You’ll even get better rates once the promotional period expires. Individuals who often want to get the debt paid off faster transfer balances to a better credit card.
4. Find Your Dream House
Perhaps one of the biggest reasons to know your credit score is when you’re getting ready to purchase a home. It’s often said that a home is probably the most significant investment you’ll ever make. Even with a slightly higher credit score, you could potentially save thousands of dollars on a loan. So, even if you’re trying to rent an apartment, your credit score will be equally important. Similarly, it’s essential to know your credit score for any major purchase, even if you’re taking a loan for home improvement or needing a new car.
5. Can Give You An Upper Hand
If you’ve taken the time to improve your credit, you’ll have the upper hand when it comes to negotiating or shopping around for better rates. For instance, with better credit, you could compare offers of the exact vehicle from two dealerships. As a result, you’ll end up saving money and always get the best deal possible when you’ve taken proactive measures.
The Bottom Line On Knowing Your Credit Score
- Knowing your credit can keep your guard up against possible fraudsters.
- You need to know your credit score for significant purchases like a home or car.
- Applying for jobs in today’s world can often mean asking for your credit report.
- The buyer has more leverage when they have better credit.