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6 surprising reasons why your credit score matters

Computer screen showing reasons to care about your credit score

August 2016Capital One Essentials

It's a bit like a passport. You don’t think about it until you’re going on holiday. The problem is, if you wait until the last minute to sort it out - you might end up having to postpone your plans.

The same is true for your credit score. Here are six reasons why you should care about your credit score:

Mobile phone contracts

Phone providers will usually do a credit check before handing you a new shiny phone. If your credit score isn’t up to scratch, they could turn you down - leaving you with Pay-As-You-Go as your only option, and a mark on your credit report.

Renting a house

It’s not uncommon for landlords and estate agents to do credit checks. A healthy credit score could save you from having to pay an additional deposit up front, or from having to ask a family member to sign as a guarantor on your behalf.

Applying for a credit card

People use credit cards for many different reasons, from helping with emergency expenses, to every day purchases. When you apply for one, the provider will typically do a credit check to assess how much of a risk you might be.

The good news is that some credit card companies offer eligibility checkers that let you know if you’ll be accepted before you apply - without impacting your credit score. Try QuickCheck by Capital One today.

Monthly car insurance

If you choose to pay in monthly installments, insurers will typically do a credit check before giving you the green light. This is because the insurer is effectively loaning you the insurance upfront. Having a good credit score improves your chances of being accepted.

Buying a house

In recent years, banks have become much stricter with their mortgage lending criteria, and your credit score plays a very big role in your chances of being accepted.

Save money on interest rates

Thinking about getting a car on finance, or applying for a loan or credit card? Your credit score could affect the interest rate you’re offered. So a good credit score could save you money in the long run.

Now you know why you should care about your credit score – find out how you can improve it. Follow our 7 simple steps to improving your credit score today.

Check if you'll be accepted

Try Capital One QuickCheck today to know if you'll be accepted, so you can apply with confidence.