How Your Credit Score Affects Your Life
Your credit score will have a huge impact on your financial well being throughout the course of your life! Like it or not, a 3 digit number designed to predict your propsensity to pay (or fail to pay) your bills will end up either saving you, or costing you a large amount of money in the long run.
Your credit score will affect the interest rate on your credit cards, the interest rate you get on your mortgage, your ability to apply for and receive personal loans when neccesary and much more.
Let’s look at a hypothetical situation where two very similar people with different credit scores end up paying a much different amount to finance various large expenditures over the course of their lives.
As you can see, over the course of their lives, John payed nearly $300,000 more interest than Christina did, despite the fact that all their loans had the same principal value. Had this series of excess interest been invested in equities throughout the course of John’s life, by the age of 65 he would have accumulated over $1,500,000!
So we see that although it may not seem completely fair or even fair at all; the affect your credit score will have on your life (financially, emotionally and physically) is tremendous.
You owe it to yourself to find out what your credit score is and take action if it’s not as high as you’d like for it to be.