Your credit score is one of the most critical pieces of information about you. For example, having good credit can determine whether you can be approved for future credit, whether it is 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. Credit scores also affect things like the amount you must 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 promptly. The better your credit score, the better your rates will be. While you do not need a perfect credit score and lower scores will not automatically disqualify you from some loans, it’s always good to find ways to improve your credit overall. You can improve your score in several ways, from cutting back on unnecessary expenses, applying your savings to paying off debts and closing credit card accounts, seeking debt management and credit counselling in Edmonton.