Our credit scores are becoming increasingly important in our lives. At one time, whether or not you got a loan from a bank depended on the bank manager knowing you and/or your family and judging that you were honest enough, and solvent enough, to pay back what you borrowed. That model has long since been replaced by the ubiquitous credit score. We worry that our credit scores aren’t high enough, or that a mistake on our part – or that of a financial institution, credit card company, or a criminal – will have adverse effects on our credit scores that last for years. These fears are not unfounded. A savvy consumer these days takes an interest in their credit score. They know what it is, what should be on it and what should not, and they know how to repair any damage to it. This is a good thing, because in the world online banking, your credit score dictates how you are treated in the world of finance.
If you are a customer of an online bank – and most of us are – the single most important piece of information contained in your bank records is your credit score. Your credit score will be the deciding factor in whether you are granted a loan or a mortgage, or not. Your credit score will dictate the interest rate of any loan you are approved for. It will decide whether you can be approved for vehicle financing or a new credit card or an overdraft. If your credit score is too low, you will find yourself paying more for financial services that would someone with a higher score, just proving the point that the rich pay less for everything. The moral of the story is, though, that you should know about your credit score, keep careful track of it, and make sure that you work towards increasing your score regularly. You must remember that when the only information the computer has about you is your credit score, your chances of getting good financial services at a reasonable rate are much higher.