exploring the essentials of money

Credit scores are important when you want to borrow money. The scores affect the interest rates you pay and the loans that are offered to you. They're most important when it comes time to buy a home, or refinance the mortgage on the home you own, because these are big transactions in your financial life. If you have a lousy credit score, you'll pay higher interest rates, or might not even be able to borrow at all - meaning, you won't be able to buy a house. So having a good credit score is very important to a homeowner-to-be.