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Credit Score

Does My Credit Define Me?

Having an excellent credit rating seems to be a main focus in today’s society. If you want a great place to live, great car to drive, and a well paying job, then your credit needs to be stable. Having a negative credit standing can hinder you in an abundance of ways.

As I think back to my past college days, credit was the last thing I thought about. Being able to charge that beautiful pair of shoes that I saw the previous week was my main concern. Now that I am older and hopefully wiser, I understand that maintaining good credit is a necessary evil.

Today’s society has become totally dependent on using credit to purchase many items. Even if you do not have the cash upfront, you are still able to obtain your desired products through credit cards.

In order to have a home in a very desirable area, your credit will dictate if this is a possibility. Mortgage lenders do no want to lend money to someone with horrible credit. They would like a guarantee that you will not default on any loans and will pay the money back.

Possessing an excellent credit score shows them that you are capable of doing this and therefore worth the risk. Anyone that has ever had low or bad credit soon realize that the interest rates on loans can be brutal.

Credit standing is important even if you are not planning on buying a home and only want to rent an apartment or condo. Potential landlords will do a credit check to see if you are worthy of renting from them. It is almost as if your lease is considered to be a loan.

check creditThey are taking the chance of leasing property to you in the event that you will make monthly payments to them for rent. Some of them consider having a stable credit history will prove that you are not a high risk and will make on time payments on a regular basis.

Bad credit can prove to be a downfall for many potential renters. It can cause them to get denied and therefor loose out on the rental.

The latest area that I have noticed to be affected by credit standing is employment. Never in a million years did I think that having bad credit could cause anyone not to be hired. Most people feel that your credit history is a personal thing that has nothing to do with your work skills.

However, many employers feel differently. They consider doing a credit check as a normal part of the hiring process. By not demonstrating a good or excellent financial responsibility when it comes to bills, then you will possibly not perform well in the work place.

Employers will be hesitant about offering you the position because your debt level is way too much for the salary they are willing to offer you.

As I grow older, I begin to notice the mistakes of my youth can have a lasting effect. I am slowly but surely repairing the damage done to my credit status from earlier years.

Although I have never been turned down for employment because of my credit status, I know that I still need to improve it. Having poor credit is almost like having a sign on your back saying “I don’t pay bills”.

Now that I see my credit is improving, I feel less stress. No, my credit does not define me but it can slow my progress.