Thank you Capital One for sponsoring this post! All opinions are my own and were not directed by Capital One. To learn more about CreditWise from Capital One, visit: www.capitalone.com/creditwise
Credit is kind of our lifeline in the real world – a good credit score can help you buy or lease a car, buy or rent a house/apartment, get approved for a credit card, etc. You basically need credit to function. With a new baby here, I feel like paying attention to both of our credit scores is more important than ever. We want to make sure our little one has every available opportunity both now and in the future. That’s why it’s important to understand your credit score and what it does for you. So today I am partnering with CreditWise® from Capital One® to show you just that.
Why A Good Credit Score Is So Important
To me, a credit score tells you exactly where you stand. If you have an excellent credit score, you probably have a pretty good handle on your finances (think paying your bills on time and keeping your account balances in check). It has nothing to do with how much money you have, but it’s an important number to want to improve and maintain.
Even though Andrew and I both have excellent credit, we want to make sure we are doing anything and everything for our little guy’s future. We want him to grow up understanding the importance of financial responsibilities, and when it’s time for him to go out in the world we want him to be far more prepared than I was.
Here are a few reasons why a good credit score is so important:
It helps with life’s big – and small – moments. If you have great credit, it sets you up for financial success. I don’t mean to go crazy with spending, I just mean that you hold the power of what you can buy. A house, a car, a new purse (I’m guilty of this!)… It’s all up to you to improve, manage, and protect your credit so these opportunities are available to you!
It helped put me in charge of my destiny. Do you want to go back to school and get a Master’s degree? Maybe you can’t work full time and go to school so you’re looking to take out student loans. If you have great credit, you can probably get loans easier and with a lower interest rate. Trust me on this as someone who is paying off student loans: you want as low of a rate as humanly possible! While my and Andrew’s plan will always be to pay for our kid’s college, you never know what the future may hold. If we raise him to have a good sense of responsibility with finances and lead by example with excellent credit, we hope he will be far better off.
It gives me confidence: Being financially independent is truly beautiful, and my good credit score is part of that. Some of my best days were the days when I was first completely financially independent. I can only hope our child and any future children feel that sense of independence and how amazing it can be!
With CreditWise, I can continuously monitor my credit and stay on top of where it goes. There is even a credit simulator to check different scenarios that may either improve or hurt your credit score, depending on different factors. I find these features so useful, and it has really helped me understand what goes into my credit score as I keep looking to improve it. Millions of CreditWise users have seen their score improve by 20 points or more – I am working to do the same!
Why is a good credit score important to YOU and what will you do to improve it? Let me know in the comments and make sure to download the app now to start keeping on top of your credit today!
Credit is more important than many people realize. And used far more to judge you than most people realize. Learn to pay cash if at all possible and if you must charge, pay it off as quickly as you can.
Credit is so incredibly important, it always surprises me when people fail to realize that. I am working hard at increasing my credit score to get back up into what I consider satisfactory numbers – it’s been a slow process, but oh so worth it.
Great info. My credit score took a big hit when I went thru a divorce and I’m still working to rebuild it. I ended up having a lot of credit cards write off my debt, which is a huge black mark on your credit because it ruins your payment history. I have been working with Credit Sesame to monitor my credit score and think the next thing to do, because I have no outstanding loans outside of my student loans which are on deferment, is to get a secured credit card, use it and pay if off in full every month to help with my payment history.
We were taught at a young age to never spend more than what we make. Especially when it comes to credit cards. Our credit score is the best and our banker was impressed when we went to build our new home. We have it almost paid off and in only 15 years.
Great article. It’s always a good thing to pay attention to and understand how it works. I’m so thankful that both my hubby and I were able to get a great credit score and own our home by the time we were 27.
I stopped caring about my credit score when I started Financial Peace University. I don’t have consumer debt, just a mortgage and pay for everything with cash. I’m a big C1 fan and have been a customer for years!
Your point that if your credit score is good, then you probably have a good handle on your finances is spot on. My husband and I let our credit card creep up over the holidays (like we do every year dang it), but like always, we put the brakes on spending and focus on getting it back down ASAP. And our good scores reflect that. I need a new truck, and I’m not the slightest concerned about qualifying and getting the best rate. That is why it’s so important especially to me.
Oh muy goodness you are preaching to the choir. When I got to this country I did not have any credit history, was difficult but now life is good. We all need to build and take care of our good credit score.
This is so true! I keep telling my husband (who is a teacher) that we need to teach kids about this early! I had no idea or education about it and luckily didn’t fall into the trap that a lot of people do! So so important!
I’ve never had credit and you know what is really odd about that? You can’t get credit if you have no credit. This has literally been my life for years, so yes. Good credit matters. Having credit matters!!
SO true! Having good credit scores was essential for when it was time to buy a house. One thing couples should keep in mind is that it doesn’t matter if ONE of you has a great credit score, because lenders typically only account for the lowest credit score of the two!
I used to have amazing credit score. Then I stopped working for two years and money was really tight. I’m slowly getting back on track but it’s not easy.
Thank you for offering your insight into finances. I really appreciate it.
Charmaine Ng | Architecture & Lifestyle Blog
http://charmainenyw.com
Really important information! I can always use tips and resources to make it better!
Credit is vital. If you don’t have good credit, you have limitations.
Credit is more important than many people realize. And used far more to judge you than most people realize. Learn to pay cash if at all possible and if you must charge, pay it off as quickly as you can.
Great information! Good credit is so important and something to be reminded of so that we remember to manage it well.
Credit is so important. Until going to grad school now the only loan I had was my mortgage. It’s so important to keep track of.
Credit is so incredibly important, it always surprises me when people fail to realize that. I am working hard at increasing my credit score to get back up into what I consider satisfactory numbers – it’s been a slow process, but oh so worth it.
Great info. My credit score took a big hit when I went thru a divorce and I’m still working to rebuild it. I ended up having a lot of credit cards write off my debt, which is a huge black mark on your credit because it ruins your payment history. I have been working with Credit Sesame to monitor my credit score and think the next thing to do, because I have no outstanding loans outside of my student loans which are on deferment, is to get a secured credit card, use it and pay if off in full every month to help with my payment history.
I feel like this is so important and should be learned in high school honestly. Credit is so beneficial and something to use wisely!
This is really helpful for me! I’m completely illiterate when it comes to finances.
We were taught at a young age to never spend more than what we make. Especially when it comes to credit cards. Our credit score is the best and our banker was impressed when we went to build our new home. We have it almost paid off and in only 15 years.
A good credit score is so important, and it’s definitely something to pay attention to! Thank you for reminding us of that! 🙂
Great article. It’s always a good thing to pay attention to and understand how it works. I’m so thankful that both my hubby and I were able to get a great credit score and own our home by the time we were 27.
It’s important to me so my husband and I can buy a house soon!
I stopped caring about my credit score when I started Financial Peace University. I don’t have consumer debt, just a mortgage and pay for everything with cash. I’m a big C1 fan and have been a customer for years!
Great post! I think a majority of people don’t even think about the credit score but it’s very important to know your score and how it affects you!
This is very helpful! It is definitely important to understand why you need a good credit score along with the ways you can harm or improve it.
I don’t have a very good credit score, myself. I know it’s important though.
Your point that if your credit score is good, then you probably have a good handle on your finances is spot on. My husband and I let our credit card creep up over the holidays (like we do every year dang it), but like always, we put the brakes on spending and focus on getting it back down ASAP. And our good scores reflect that. I need a new truck, and I’m not the slightest concerned about qualifying and getting the best rate. That is why it’s so important especially to me.
Great points you mentioned. I really need to start working on mine!
Yes to this! I’m so thankful we have good credit haha.
Oh muy goodness you are preaching to the choir. When I got to this country I did not have any credit history, was difficult but now life is good. We all need to build and take care of our good credit score.
This is so true! I keep telling my husband (who is a teacher) that we need to teach kids about this early! I had no idea or education about it and luckily didn’t fall into the trap that a lot of people do! So so important!
xx,
Lacey
http://www.theglittergospelblog.com
It so important!! I’m so glad my Dad taught me about stuff like this when I was young so i had more opportunities as I grew up!
Omg having good credit is so important!!! When it comes to buying a house, that’s where good credit comes in handy!
I’ve never had credit and you know what is really odd about that? You can’t get credit if you have no credit. This has literally been my life for years, so yes. Good credit matters. Having credit matters!!
SO true! Having good credit scores was essential for when it was time to buy a house. One thing couples should keep in mind is that it doesn’t matter if ONE of you has a great credit score, because lenders typically only account for the lowest credit score of the two!
I used to have amazing credit score. Then I stopped working for two years and money was really tight. I’m slowly getting back on track but it’s not easy.