The credit record is one of the main things that represent you as an individual, especially when you need to perform financial activities. Your credit record can help you or not, depending how you take care of it. You may think that a bad credit score will not have effects in the future, but it will, especially if you want a loan from the bank. So how exactly does the credit record affect you?
Your credit score affects your ability to get a mortgage
One of the main things your credit record has direct effects upon is your ability to get loans, and more importantly, a mortgage. The credit score and credit report are the key ingredients when it comes to getting a mortgage, because they actually show if you are eligible to pay and at what rate you will pay.
Difference between credit report and credit score
You need to understand that the credit report and the credit score are two entirely different things. The credit score is usually calculated based on the information received on the credit record, therefore the credit record is much more important. The higher the score, the better credit history you have, the more eligible you will be for lower rates.
There are other factors as well that will influence your ability to get a mortgage, such as:
Your credit score affects your chances to get a job
Even though you may have never thought about it this way, but a bad credit record can actually affect your chances to get a good job. How so? Well, most of the employers out there will want to check your credit history and credit score to know what is your financial situation and how can you handle money. However, they need your permission to do that, so pay attention on what you say during an interview and what you will agree on.
What if you have low credit score?
If you have a low credit score, employees may refuse your application simply based on the fact that you are not a reliable person, you are not an organized person, etc. Therefore, try to keep your credit score as high as you can or try to avoid showing your credit report to your future employees if you are ashamed with it. Debts for example are one of the main reason employees refuse applications.