Personal Finance and Your Credit Score

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How does my credit score affect me?

Personal Finance and Your Credit Score

Your credit score affects you in many ways, some are more obvious than others. For example, when you apply for a loan or a credit card, your credit score helps to determine if you will be approved, how much you will be approved for, and what interest rate you will be charged. Then there are the not-so-obvious ways your credit score affects you. Even if you are approved for credit, the creditor can monitor your credit score over time. Even if you pay some credit accounts on time and others late, the creditors you pay on time may still boost your interest rate. Other examples include insurance companies that will use a type of credit score called an "insurance score." And in addition to the first and last month's rent and references, some landlords now request permission to check your free credit score. Over time, companies and individuals will undoubtedly develop more uses for credit scores. If your credit score could use a boost, start taking steps today to improve it. Doing so will open doors for you down the road.

   

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