4 Reasons Why Good Credit Really Does Matter

Posted on Thursday 18 May 2017


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Good credit really does matter, whether Canadians (or anyone) like it or not. It's imperative to try and keep your credit report clean and maintain a decent score. It impacts everything in life.

While it's impossible to perfectly predict the future, and from time to time life is going to throw you a curve ball, the goal should be to get back on track as soon as possible. You want to do your very best to save money, invest money and manage your money to maintain that solid credit rating.

Financial experts are constantly reiterating the importance of credit scores. You have to pay attention to your portfolio, your identity and your personal finances with a keen eye--that is if you're going to get to where you want to be financially.

Good credit affects more than just borrowing money -- it can help you out in a variety of situations, just like bad credit can hurt your options.

Once again, whether you like it or not--the truth is that your credit score can clearly impact your overall quality of life.

Below we are going to share 4 areas where having a good credit score can help you achieve your goals.


Your credit score can hinder your job search

It really is sad that a credit score can keep you from the job of your dreams, but unfortunately, it can. If you are a financial accountant, or you work in a bank, or you need top secret security clearances--your credit can cost you your job, or prevent you from ever landing one.

While it just feels wrong that hiring managers look at this aspect of your life, from their perspective it opens up avenues of risk and identifies a candidate as being potentially unstable. It is just one reason why your credit is so very important.

You might have the best skills for a position, and the experience to validate yourself as the ideal candidate, but your money management skills might turn out to be your worst enemy. You can enrol in financial counselling services to turn this around, and doing so can go in your favour too.


When you want to start a business

This one makes sense because you need capital to begin a business. For most people, they need to try and gain investors, but investors are going to want to know how well you handle your finances and what equity you're putting into a start-up yourself.

In fact, if you go the traditional route for investment, financial institutions are going to scrutinize every area of your finances which will frequently include pulling a personal credit report. So, you have to stay on your toes with this one unless you have rich friends willing to help.


Making a move and getting utilities turned on without a deposit

Your credit impacts your ability to get your utilities turned on in an affordable way. No one wants to spend a lot of money relocating only to find they have to shell out $300 for an electric deposit, or $150 for their water to be turned on.

That is just awful, especially when you consider the other costs of moving to a new place. This is why credit scores are so important to manage on a more domestic level. You want to be able to provide housing for your family and not break the bank doing so.


Applying for financing for jewellery or other high end items

If you're hoping to finance a wedding ring, or engagement ring--or any kind of item such as this, poor credit can have jewellers turning you down everywhere you go. It can be disappointing, but it isn't the end of the world either.

Until you can build up your credit and acquire good standing again you simply have to save to pay for an item like this instead of getting a loan. Financial experts claim paying cash for these items is smarter than having payments for a few years. On the other hand, it's not great to have to put your life on hold while you save up.