There are several reasons why you should know your credit score.
Interest rate
The first reason is that you are going to be able to get a lower interest rate on your credit cards and loans. The interest rate is related to your credit score. Therefore, if you have a good credit, then you are going to be able to get the best interest rate. This means that you are going to be paying a lower finance charges on your balance of your credit card or when you get a loan. You will be able to pay them off a lot sooner.
Approval
The second reason is that there is a better chance of you getting a credit card or loan approved. Therefore, if you have a credit history that is shaky, then there is a big chance that you are going to be turned down for getting a credit card or a loan. Even though if you have good credit, it does not guarantee that you are going to get approved because they are also going to look at your income and debt. But it is going to help to increase the chances of being approved by the lenders.
Negotiation
The third reason is that you are going to have the power to negotiate with the lenders. This means that you more than likely, you will be able to negotiate a lower interest rate on your credit card or the loan. Most of the time, if you have a lower score on your credit, then the creditors are not going to budge on the terms of the loan. Therefore, you are not going to be able to shop around for different terms of the loan or the interest rate for the credit card that you are applying for.
Limits
The fourth reason to know your credit score is that there is a chance that you are going to get approved for a higher limit on your credit card. The capacity that you are going to be able to borrow is going to be based on the score of your credit and your income. This is because the banks are going to be a lot more willing to let you borrow a lot more money since you have showed that you can pay your money back on time that you have borrowed. If the score is bad, you will still be approved, but the amount is going to have limits.
Rentals
The fifth reason is that it is going to be a lot easier for you to get approved for a rental home or an apartment. This is because the landlords are going to screen the tenants through their score. If it is bad and you have a previous eviction or outstanding balance on your rental home or apartment, then they are going to see you as damaged property. Therefore, they are not going to want to rent you an apartment. But when it is good, then you are going to be able to save a lot of time and hassle.
Insurance
The sixth reason is that you are going to be able to get a better rate on your car insurance. This is because when you have bad credit, then the insurance company is going to think that you are going to file a lot more claims. Therefore, you are going to get penalized with a higher premium on your car insurance. But if your credit is good, then you are going to pay a lot less for your car insurance than people who have bad credit.
Phones
The seven reason is that you will be able to get a contract for your cellphone without having to pay a security deposit. When your credit is bad, then you will have to pay a security deposit in order to be in contract with the cell phone company. This means that most of the time, you are going to be able to get a pay as you go plan. Therefore, this is going to be a lot more expensive to get a cellphone when your credit is bad. You will also be able to get a better deal on the phone if your credit is good.
Utilities
The last reason is that you are not going to have to pay a security deposit on your utilities when your credit is good. Most of the time, the security deposit is going to be between one to two hundred dollars, so when you are relocating, then it is going to be very inconvenient since you are probably not going to have the extra money. This is because you are going to be paying for a variety of other moving expenses. Therefore, this is something that you are going to try to avoid when moving.