U.S. Credit Score Importance

Do I absolutely need to build a credit score in the U.S to survive?

Having a decent credit score in the U.S. will present you with better financial credibility, which will make you eligible to get loans at a lesser interest rate. Other important factors like wealth, assets, existing debts, etc., also play a vital role while calculating your interest rate. Still, the credit score is the most tangible detector and is the most widely used. The premium for your health, car, and home insurance depends directly on your U.S. credit score. A good score will help get you a lower premium, which will also help you save money.

Some companies also check your credit score before offering you a job. With a good credit score, you also hold a higher bargaining power as credit companies give the best offers to customers with a good credit score. The utility services like electricity, gas, water, cooling, heating and garbage disposal are also affected. If you have a bad credit score, you may have to pay deposits to access these services in the U.S. You can work a few months to build and raise your credit scores to get a better interest rate.

You’ll also soon need to pay a rental deposit or get a phone plan. If your U.S. credit score is not up to the mark, it can cause you a lot of grief, and you stand a chance of getting your application rejected. Three credit bureaus assess your credit score in the U.S.: Equifax, Experian, and TransUnion. These scores are used by potential lenders and creditors when deciding whether to offer you a credit, like a loan or a credit card.