Credit also plays a role when you’re trying to do things like buy a home or finance a car. Having good credit may help you qualify to borrow—and borrow at lower interest rates. And interest rates are important, because the higher your rate, the more you could end up paying over the life of the loan.

Why is it important to have a good credit score as a student?

What’s Considered a Good Credit Score Having a good credit score is usually associated with being approved for a credit card or a loan. But it can impact much more than that. Good scores can affect interest rates, credit limits, housing applications and sometimes even job prospects.

Do colleges look at your credit score?

A loan applicant’s credit score does not affect access to Stafford or Perkins loans. On top of that, many college hopefuls aren’t going to have much of a credit history, if any, so factoring that into loan accessibility would severely limit students’ ability to afford higher education.

What can you do with a good credit score?

In other words, you can apply for a loan or credit card with confidence. A good credit score gives you leverage to negotiate a lower interest rate on a credit card or a new loan. If you need more bargaining power, you can take advantage of other attractive offers that you’ve received from other companies based on your credit score.

What happens when you have a poor credit score?

The less money you pay in interest, the faster you’ll pay off the debt and the more money you have for other expenses. Borrowers with a poor credit history typically avoid applying for a new credit card or loan because they’ve been turned down previously.

Why is it important to know your credit score in Canada?

Many Canadians are still in the dark when it comes to the importance of monitoring their credit score. With Canada’s household debt at record levels, we think there’s a really important opportunity to educate Canadians about credit and help them better manage their finances.

Why is it important to have good credit before buying a house?

Before you can buy a house, mortgage lenders want to know that you won’t default on your mortgage. If you don’t have good credit, the lender will consider it risky to give you a mortgage loan. If you’re approved for a mortgage, your credit affects your interest rate.