How Important is my Credit Score?

It can be easy to dismiss credit score and think that it is not really something that is important. However, it could be very important at some points in time and to some people and therefore it is good to be aware of those that will think it is important and then you will be able to judge whether it is something that you think will be worth worrying about.


If you want to borrow money then the lender will normally look at your credit record. They will want to see whether you will be able to make the repayments. Most lenders will want you to make monthly repayments and they will want to check to make sure that they can trust you to do this. They will therefore look to see if you are making other regular payments and that will show you are capable of managing your money to do this. They will also want to look and see whether you can afford to make extra payments to what you are already making so they will want to see that you do not have too many different loans to have to repay and that you have a regular income to be able to pay from.


A landlord will be relying on you to be able to make a regular payment each month. They will therefore be looking for evidence that you will be able to do this. This is something that your credit report can show, if you make regular bill payments or regular loan repayments. They will also want to check that you are going to be able to afford the rent each month and so will also look to make sure that you don’t seem desperate for money, which having lots of loans or applying for lots of loans might indicate.


It is possible that an insurer might check before allowing you take on a policy with monthly repayments. They will also be checking to see if they can trust you to make regular payments and evidence that you are already doing this and that you are not borrowing too much money as well. If they feel you cannot be trusted to make regular monthly payments, they may not offer you insurance at all or may offer you only yearly payment in advance.

Utility Providers

These will be looking for similar things to insurers. If they feel that you cannot be trusted to make regular payments, they may decide that you will need a prepayment meter which are more expensive than paying monthly.


Not all employers will look at your credit record but there are some that will. It is therefore a good idea to think about whether it could impact your job prospects if they do not like the look of it. It is likely that lots of borrowing is more likely to be a worry to them as it is most likely that it will be banks and similar that will be wanting to check that you can be trusted dealing with money.

So, you can see that actually your credit score could be extremely important. You never know when you might need to borrow money or when you may want to rent a home or even get a new job. If you need to change insurers or utility providers it could be important as well. Therefore, think hard about the advantages in improving your credit score as it could have a big impact on you and even if you feel it will not matter now, it could matter in the future.

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