Like it or not, your credit score is a big part of your digital reputation. Plenty of people consider your three-digit score when making decisions that could have a big impact on your life — and not just lenders. With just a few keystrokes, it’s easy for others to check your score with the three leading credit bureaus: TransUnion, Equifax and Experian. Chances are you won’t always know when someone is checking it, but, make no mistake; someone will.

Like your social-media footprint, your credit score offers insights into an important part of your life — your financial life. It provides a snapshot of:

• Your history of on-time and late payments;
• How much debt you currently carry;
• What types of credit you have;
• How often you open (and even pursue) additional lines of credit.

A sliding scale of 300 to 850 is used to rank your credit worthiness as either bad (300-550), poor (550-649), fair (650-699), good (700-749) or excellent (750 and above). Building a good credit history and maintaining a high credit score can have a dramatic impact on nearly every part of your life. How?

Without good credit, it’s tough to get a loan.
Home loan, auto loan, student loan, small-business loan — any kind of loan. Nearly everyone needs a loan at some time in life. Lenders consider the risks involved before lending anyone money. Are you reliable and likely to pay the money back? Will you pay it back on time? If your credit history reflects a lot of late payments or that you’ve defaulted on a previous loan, you’ll be hard-pressed to find someone to loan you money.

The best interest rates go to those with good credit.
The higher your credit score, the more attractive the interest rates you’ll be offered. Consumers with good credit scores have choices and can shop around for the lowest rates on credit cards, home loans, auto loans and more. That’s not the case for folks with low credit scores. In fact, a lender willing to loan money to a poor credit risk is going to charge dramatically higher interest. Over time, that means you’ll pay far more for many of life’s basic necessities — like a place to live, transportation and more. let’s say something about how if you don’t qualify for traditional loans because your score is too low, you could be forced into alternative lending providers like payday lenders, who charge very high rates and sometimes fees. fees and

Employers, landlords, even utility companies check credit scores.
We’ve all heard about hiring managers taking a look at job candidates’ Twitter, Facebook and Instagram profiles when deciding if they’re a good fit for their company. Many employers also check your credit score when you apply for a job. If you haven’t demonstrated financial responsibility, an employer may be hesitant to hire you. You also could find it tough to rent an apartment, get utility service or auto insurance. Bottom line, your credit score is considered an indicator of your financial trustworthiness.

You can turn things around.
If your credit is less than perfect, there are things you can do to turn it around. Pay your bills on time. Don’t apply for more credit than you can handle, and don’t max out your lines of credit. Burdening yourself with lots of credit card payments makes it tough to keep up. Pay off your credit balance each month. If you do have outstanding balances, pay them off as quickly as possible. Consider credit counseling if you’re struggling. The credit counselors at Financial Center can help you make a plan to get out from underneath debt and improve your credit score. To schedule a credit counseling session, please fill out the form below.

And, if you’ve had trouble getting a loan due to poor credit or no credit history at all, Financial Center offers the Empower Loan¹. With a competitive, fixed interest rate, and no annual fee it helps you make a fresh start and begin building a good payment history. Remember, we’re always here to help empower your future. Reach out to us at 317.916.7700.