California (OPENPRESS) April 17, 2012 - Have you ever asked, "Why should I care about my credit scores? It is what it is, right?"
If you've asked that question, you couldn't be more out of touch. You should care very much what your credit score is - it's the building block of your life. Your credit score touches virtually every portion of your life.
Yet even so, the Fair Isaac Corporation recently discovered that 49 percent of those polled didn't even know that credit scores measure credit risk. Most people also don't understand that their credit scores fluctuate daily. This is because creditors report when you do and don't pay your bills each day, which causes the fluctuation in your credit score.
In other words, your credit score is sensitive - it is affected by every financial move you make. Therefore, it is crucial that you keep your finger on the pulse of your score, so you have a good idea at all times not only how you're doing financially, but also where you need to improve.
Not only does your credit score affect your financial well being, but your professional life as well. Many employers now run credit checks as a standard part of the hiring process. Your score shows an employer whether you are responsible, organized and stable.
Your credit score also affects the type of credit you can get, including credit cards. If you have a poor credit score, it is more likely that you also have at least one credit card that has a higher interest rate.
If you try to apply for a credit card with a bad credit score, you'll find that it doesn't just affect your interest rate - it also affects the type of card you can be approved for. You will find your are offered a secured credit card, a type of card that requires a security deposit, which you draw against when you make charges.
What you won't find with credit cards offered to those with poor credit are the perks you see advertised on television - you won't get the cash back on purchases, airline miles, shopping discounts or gas rewards.
Obviously, having good credit is way better than bad. So to answer the original question, it's not that you should care about your credit score. It's that you must care about your credit score.
If you find your score is less than you'd like, remember that the sooner you get to work paying bills on time and cleaning up your credit report, the sooner you'll be able to enjoy all the benefits of having good credit.