Why you shouldnt worry about your credit score?

Without a good credit score and history, the experts say, its more difficult to qualify for a mortgage or car loan – and more expensive, too, because you wont get the best interest rates. In many states, bad credit can even raise your insurance premiums, cost you a rental apartment, or make it harder to get hired.

Do I need to worry about my credit score?

And a good score, on the higher end of a range typically between 300 and 850, can lead to lower interest rates on loans and better credit card offerings. But unless youre in the market for a home, a new cell phone plan, a car, credit card or some other financial product, you dont really need to worry.

Is it bad to have a bad credit score?

A bad credit score can reduce your approval chances for credit cards and loans, making it difficult to accomplish many goals. If you want to get out of debt with a balance transfer card, such as the Discover it® Balance Transfer, youll need good or excellent credit.

How can a credit score harm you?

The higher your score, the more likely you are to get approved and receive a low rate. However, other factors, such as your income, outstanding debt and history with the creditor can also impact your rate. While many lenders often use specific FICO credit scores, other lenders may use one or several scores.

Why did my credit score drop after paying off debt?

Why Did My Credit Score Drop After I Paid Off a Credit Card? Your score could have taken a dive after paying off a credit card if you closed that credit card when the balance hit zero. If you close a credit card, your credit utilization ratio will likely increase.

Is it bad to keep a zero balance on a credit card?

The standard recommendation is to keep unused accounts with zero balances open. A zero balance on a credit card reflects positively on your credit report and means you have a zero balance-to-limit ratio, also known as the utilization rate. Generally, the lower your utilization rate, the better for your credit scores.

Do unused credit cards hurt your score?

How closing a credit card can affect your score. Closing a credit card account — whether its unused or active — can hurt your credit score primarily because it reduces the amount of available credit you have. If the card you close has a small credit limit, you may see little or no effect.