4 Reasons Why Good Credit Really Does Matter

Posted on Thursday 18 May 2017


Good credit matters, whether Canadians like it or not. It impacts every aspect of your life. Therefore, it's imperative to try and keep your credit report clean and maintain a decent score. While your credit will not matter if you apply for payday loans in Hamilton, other lenders may request this.

While it's impossible to predict the future, the goal should be to get on track with your finances as soon as possible. You should do your best to save, invest and manage your money to maintain that solid credit rating. Financial experts are constantly reiterating the importance of credit scores. Pay close attention to your portfolio, your identity, and your finances. This will set you on the right financial trajectory.

Good credit affects more than your ability to borrow money. It can help you out in various situations, just like bad credit can hurt your options.

4 Areas You Need A Good Credit Score

Below are four areas where having a good credit score matters.

When seeking A Job

It appears unfair that a bad credit score can keep you from the job of your dreams. But, unfortunately, this is the reality. If you are a financial accountant, work in a bank, or any other job requiring top-secret security clearances, bad credit can cost you your job or prevent you from landing one. On the other hand, for an aspiring politician, a good credit score will prove you can afford the cost of elections.

While it feels intrusive that hiring managers look at this aspect of your life, they tend to use this to assess the risk of employing people. It also helps them to identify certain applicants as potentially unstable.

You might have the best skills for a position and the needed experience to validate yourself as the ideal candidate, but poor financial skills can still be used against you. You can enroll in financial counselling classes to find quick ways to improve your credit score.

When Starting A Business

This makes sense because you need capital to begin a business. Entrepreneurs need money from investors to scale. These investors will want to know how you handle your finances and what equity you're putting into the start-up yourself.

If you use the traditional route for investment, financial institutions will scrutinize every area of your finances, which will frequently include pulling a personal credit report. This means you have to stay on your toes with your credit score to run your business successfully.

Getting Utilities Turned On without A Deposit

Your credit impacts your ability to get your utilities turned on affordably. 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.

This can be crushing, especially when considering other costs of moving into a new place. This is why managing your credit score is so important. You will need a solid credit score to provide suitable housing for your family without running into debt.

Applying for Financing for Jewelry or Other High-End Items

If you're hoping to finance a wedding or engagement ring, poor credit can have jewellers turning you down. This is because jewellers need to ensure that these high-end items do not end up with people who cannot pay the full price.

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 more intelligent than paying in installments for a few years. But, on the other hand, it's not great to have to put your life on hold while you save up.