Why Are Credit Scores Important?

In a world where the credit rating makes up 90% of your financial reputation, you’ll want to make sure that you maintain an excellent score or rating all the time.

Maintaining a good credit standing shouldn’t be all that difficult. All you really need is to keep up with your bills. Unfortunately, things don’t always work the way we plan them to and once in a while we’ll get into some trouble that can affect our credit score. When this happens, you’ll need to work on repairing that score before your reputation plummets and life becomes much more difficult.

What Is a Credit Score?

Think of your credit standing as your image because it is in so many ways. When financial companies look at you, they won’t see your face or the way you present yourself. What they’ll see are the figures that make up your credit score.

If those figures are good, you’ll find it easy to obtain loans with better interest rates and payment terms. If the figures don’t agree with the financial institution, you’ll probably receive a blank stare or even worse.

So, if you’re looking to go through life as smooth as possible, take care of your image (credit standing).

Excellent credit standing for good image

How Does a Credit Score Work?

First of all, credit scores are maintained by organizations with access to all your history, from loans to utilities.  Some well-known organizations are FICO and Vantage.

The scoring system is measured by a chart that goes from 300 to 850. If you’re repaying your loans so that you can take out new ones more frequently, you’ll get a score of over 700. If not, then your score drops. The worse you become at repaying loans, the lower your score gets. When it reaches the lower levels, you’ll find it difficult to get any type of loan at all.

How Do You Monitor Your Credit Standing?

One of the best ways to maintain a good credit rating is to monitor your report regularly. You’re usually entitled to one free report a year from organizations that monitor your ratings. After that, you’ll need to pay a certain fee for additional reports.

However, not all companies that claim they can monitor your ratings and provide you with free credit reports are trustworthy and reliable.  Some of them can be total scams.

A good example is a company called freescore360. Now, if you are wondering is free score 360 legit? Well, according to the BBB (Better Business Bureau) this company has a score of F, which is the lowest they give out. If you want to learn more about why the BBB provides their report freely on their website.


It’s important to monitor your credit standing, but it’s even more important to make sure that you’re doing all your can to pay your loans on time. If you’re doing this, there’s no reason why you should be given a low score, which means you won’t need to worry too much about monitoring your rating.