Your credit score is one of the most important pieces of information about you. For example, having good credit can determine whether or not you can be approved for future credit whether it’s in the form of a mortgage, car loan, or credit card. If you do manage to get a loan, a good credit score can help reduce the amount of interest you have to pay each month and overall. Credit scores also affect things like the amount you have to pay on your apartment security deposit as well as how much you might have to pay for home or auto insurance.
Essentially, a credit score lets lenders numerically know if you are a reliable borrower who can pay off loans in a timely manner. The better your credit score, the better your rates will be. While you don’t need a perfect credit score and lower scores won’t automatically disqualify you from some loans, it’s always good to find ways to improve your credit overall. You can improve your score a number of ways from cutting back on unnecessary expenses, applying your savings to paying off debts, and closing credit card accounts to seeking debt management and credit counselling in Edmonton.