I have mentioned credit score many times in my previous posts but I never really discussed the importance of having a great credit score and students have major advantage over other people mainly because of time. See, it is easy to break the credit, but building it takes time. So, putting very little extra effort and caring about your credit will save you thousands of dollars in the future.

Here’s reality when it comes to credit scores, it is rather easy once you understand how to manage your money properly and I can say that it is very easy to do. If there’s one thing I want you to get from this article it would be to not buy anything that you can’t afford. In other words, once you make that purchase and you jump into the borrowing more money than you can afford, that habit will just stick to you next time you make a purchase because it will feel normal. So, avoid buying anything that you can’t afford to buy for cash right away.

You must be wondering now, well… How do I buy a house for cash, that’s not logical? The answer is that majority of millennials right now or the ones that read my blog are not buying houses yet, they are buying cars, latest gadgets, clothing brands, and items that are a want instead of a need. So, in case if you are older and reading my blog, then I hope you already have well established history by now and me and my readers would love yo hear your input about credit history importance, so please share in the comments section below.

Here are the Reasons Why You Need to Care About Your Credit Score

1. You Become a Competitive Borrower

Having a great or even good credit score can really help you to save a lot of money on interest and best terms on everything you wanting to borrow money to purchase. There is so much information available that compares a person with different levels of credit and not surprisingly a person with good to great credit will save a lot of money.

This might not sound like a lot if you are making a small purchase like an iPhone or simply something that doesn’t cost much. But put it in the big perspective for example buying a house will cost you in thousands of dollars with bad credit.

Check out my post on ways to improving your credit score by 100+ points in short amount of time.

2. Having Credit Cards with Low Interest

I hope you are careful with credit cards and able to pay them off before end of the month. The process when you apply for credit cards is the same way. The interest and even available credit that you get will depend on your credit score. Some of the best credit cards available out there in terms of rewards are only available to people with great scores and it is one of the major benefits of having a great score. Great credit score combined with proper earning and spending will give you full benefit of having to fully experience the benefits of the card.

If you have run into issues of spending too much in credit cards before, then avoid them and apply again when you feel more responsible, don’t ruin your score.

If you want to know your score and where you are standing, then MyFico is your best place to get your reports. So, check out and Student Money Adviser is giving you 20% off if you use this link.

If you ever encounter suspicious charge, see this post to be prepared and avoid it.

3. Your Car Insurance Cost 

Yes, your car insurance will charge you more and you won’t even know it. Have you ever wondered why does your friends have much lower premium? Well, could be because they are in good standing with credit.

Having a bad credit score will increase your premium because based on data that insurance companies compile, people with bad scores tend to be involved in more accidents. So, do the math and can’t blame insurance companies for that.

See my TOP 10 Insurance Discounts that you need to look into right now to save money.

4. Job Search and Opportunities

Believe it or not but bad credit will affect your job search. So, if you dreamed about that job and finally excited to apply, then know that many employers conduct credit report checks. Some employers even run credit checks to in order to promote you. They need to know that you are financially responsible.

If your income is lower than your debt and you are living paycheck to paycheck, they don’t want an employee like that because you will not be happy employee to have in the work environment.

Let’s take me for example since I am a finance major. How would you feel if I had a bad credit score and will be managing your money when clearly I can’t manage mine. So, do the math and it is the same for employers.

5. Ever Wanted to Start Business?

Ever wanted to start a business? I know I do and its been my dream and I’m sure many others out there do too. Business start-up depending on size requires capital or simply cash. In order to qualify for business loan, you will need to have a good standing credit.

6. Your Utility Bills are Also Affected

Another reason that you probably hearing for the first time. Your utility bills are also affected and before the utility company connects you to your water, electricity, or telephone and will affect your bills in terms of deposit.

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Bottom Line

Having a good credit can really help you to boost start your career after college or even new life in a different city. On the other hand, bad credit could cost you thousands of dollars in interest and many disadvantages when applying for almost everything.

I would highly recommend signing up for Credit Karma to monitor your score and it is absolutely free, check out my post on Credit Karma.

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