Are you a college student who is working hard and striving to keep you grade-point average look sharp? After all it is your GPA that would be your ticket to a graduate school, a competitive internship with some good company or even to your dream job. But if you’re hitting your books so hard that you’re completely ignoring yet another important number, your credit score, you could be making a huge mistake. Yes, it may be hard to believe but your three-digit credit score is actually even more vital than your GPA. Aren’t you sure about the reasons? Here are some.
- It decides the cost of future purchases: Although it is true that your GPA would determine certain aspects of your future, your credit score is guaranteed to influence one big thing, the cost of the big purchases that you’re going to make soon after your graduation. Both, lenders and insurance agents take a close look at your credit score when they figure out the price or the interest rates of the products that they’re selling you. For example, when you first apply for a home loan, the lender will first check your credit score before anything else.
- Once your score goes down, it takes long to improve: A bad semester may have a poor impact on your GPA and this is certainly stressful but it’s considerably easier to revive your average in the following term by studying hard. But it is not so with the credit score. Messing up once could result in a serious loss that will take a long time to mend. If your accounts go to collections, this will have a very bad impact on your score and getting back on track can take a lot of time.
- It influences your ability to find a place to live: When it comes to the basic human needs, shelter is certainly at the top of the list. Your GPA won’t have any impact in helping you find a place to live. This is because most landlords will check your credit score as a crucial part of the rental application process and he simply won’t accept tenants with a poor credit score. Of course the same is true when you’re planning to buy a home. With a poor score, qualifying for a mortgage would be well neigh impossible.
- It could strain your romantic relationships: Last, but not the least, this point might seem strange but yes, it’s true that your credit score can have an impact on your dating life. According to a survey by Nerd Wallet in 2014, half of single adults over 25 years of age are somewhat less likely or much less likely to date a person with poor credit. Most young adults realize that a significant person with a bad credit will soon become a financial baggage and hence they don’t want to get serious with such an adult.
Since having a good credit score is a bigger deal than what you thought, you’re probably wondering how you could maintain a good credit score. Pay your bills on time, avoid credit card debt, start establishing positive credit history and keep checking your credit reports at least once in a year. Dispute errors if you spot them.