4 reasons I care so much about my credit rating (even though I won’t be borrowing anytime soon)

I don’t plan to borrow money anytime soon. I recently refinanced my mortgage and don’t like borrowing for anything other than buying a home, so I don’t plan on taking out more loans for years to come.

Despite this, I am very keen on maintaining an exceptional credit rating. There are four big reasons why.

1. I want to be able to take advantage of opportunities

Although I don’t plan to borrow anytime soon, there are always a possibility that could change. This could happen, for example, if mortgage rates drop significantly and I decide to refinance again. While unlikely, no one expected them to drop as much as they did last year, so there is always a chance. It can also happen if there is a great credit card bonus offer available that I decide to pursue.

I don’t want doors closed on me because I have a low credit score.

2. My credit rating affects my insurance costs

Insurance premiums aren’t my idea of ​​a fun way to spend my money, although I do realize it’s important to be covered. Since I know insurers take credit into account when setting premiums, I want my credit rating to be great and my credit history to be great so that I don’t pay more for the protection I have. need.

3. I don’t want to make larger deposits for utilities

I will be subscribing to electricity and the Internet soon when construction of my new home is complete. And I have changed internet and cell phone companies several times over the past few years to get the best prices. Each time, the companies I was hoping to do business with checked my credit. My ability to get an account – and the deposit I needed to make – was determined by my report and my score.

I don’t want to be denied a cell phone contract or having to put more money up front, and maintaining a good credit score helps ensure that doesn’t happen.

4. I don’t want to lose job opportunities

Many employers check people’s credit before hiring. While I don’t plan on applying for any new jobs anytime soon, I also know that improving your credit may take time. If I have to look for a new job, I don’t want black marks on my credit report or a negative credit history to affect my ability to be hired.

While credit is important for loans, it affects many other aspects of your personal finances as well. So it pays to maintain a good credit history by managing debt well and paying your bills on time.