An individual’s credit is like an open book, to which not few have access to. In many cases is a number, which tells them what kind of person you are and also many other aspects of your financial life. This credit affects you more than you may realize. Consider these as examples of your financial life that is affected by your credit: first of all, your employment opportunities. Today’s market employers have access to your track record of responsibility, based on your credit. If they see that you are keen at managing your personal finances, have a relatively good credit history, they consider it less risky to entrust their finances to you, as a future employee.

Furthermore, the typical dream of everyone, is to have a home, rather than renting one, as the same amount of money you pay to your landlord for simply using his asset, could easily be given back to your lender, and the house is yours, you are its owner. That is, if the bank gives you the amount of money you need, if, again your credit is ok. Another case is the interest rate for mortgages, if you purchased a home, having a less than perfect credit. This is also the case with vehicles. Statistics speak for themselves. A bad credit will establish an interest rate of more than 20%, in many cases, for automobile financing, as opposed to 0-5% interest for a “perfect” credit status. This is a very important distinction, if you think that 20% higher interest rate, translates in giving back more than 3 times the amount you were offered initially.