John E. Pytte Dec. 16, 2015

Credit scoreOur society has become largely dependent on credit. If you want to get a mortgage loan to buy a house, if you need a loan to pay for college, or if you simply want to put gas and lunch on a credit card, a company is extending credit to you. The three-digit credit score that defines your credit worthiness is the key to your financial life. Having good credit can make or break your chances of getting a certain car loan, student loan, mortgage, or ability to rent a nice apartment. Your credit information and history essentially show two key things:

  • How likely you are to pay back the money you borrow

  • If you can be considered reliable and responsible (by landlords, insurers, and employers)

The characteristics from your financial life can be extrapolated to other situations, allowing others to infer that you are responsible (or the opposite) in multiple areas of life. This is why having the best credit score you can is truly important. It offers more than just financial implications.


When it comes to finding a new place to call home, having good credit is important. Mortgage lenders want to have the confidence that you won't default on your loan. If you don't have good credit, the lender will consider it too risky to give you a mortgage loan. They don't want to risk a foreclosure any more than you, as that means they are not getting back the money they lent out. This risk potential could result in either a higher cost of borrowing or an outright denial of the loan. If you're seeking to rent, landlords consider your lease a loan - as if you're being loaned a place to live and the landlord wants to know that you'll pay back this loan. Having bad credit can compromise your ability to get an apartment because the landlord has no reason to believe that you will pay what you say you will.


Unless you have the cash to buy a car upfront, you'll have to get a car loan to finance it. Your credit not only affects whether or not you qualify for the loan, but also the amount and interest rate of the loan. Generally, having good credit allows you to qualify for larger loan amounts with lower interest rates. Lenders do not want to loan money to people they see as a vehicle repossession risk, and will either deny them a loan or charge them much higher rates.

Starting A Business

Many people have dreams of having control over their schedule and work by becoming an entrepreneur. Starting a business typically requires a significant amount of cash that you may not have on hand. In that case, you may need a small business loan - something else you'll need good credit to qualify for.


Having a spotty history when it comes to borrowing and spending can hurt your job search. Many companies check an applicant's credit as part of the background check to screen potential employees. Some also check credit histories when employees are considered for promotions. Before a potential employer can pull such information, you must sign a release. Your employment is the key aspect of your financial livelihood, so this is a critical reason to have the best credit score you can to open up more opportunities for you.

The Next Steps

With the New Year just around the corner, you want to start on the right foot and get in the best financial shape possible. There are simple yet effective steps you can take to have the best credit score possible and set up a promising future for yourself. For one you must practice being financially responsible and commit to paying off debts. Up to 30% of your credit score comes from credit card balances, so knock down high balances and keep them low. If you contact John Pytte’s Georgia Debt Relief Office, we can offer valuable advice specifically for your situation. We look forward to addressing your unique concerns and helping you reach your financial goals.