Bad credit score. Worried? Who, me?

When does your credit score matter? There are three situations where it might make a difference.

1) Applying for a mortgage (or any other loan): A good credit score will get you a lower interest rate, which means lower monthly payments. A really bad score will get your mortgage application rejected.

2) Applying for a job: Some employers will care about bill-paying history. If you’re late on a lot of payments the other guy might get the job you’re hoping for.

3) Applying for a lease on a house or apartment: All landlords want you to pay rent on time. A history of late payments will tell a prospective landlord that you might not be a good risk and the other guy will get the apartment with the nice sunroom and the newly remodeled kitchen. Better luck next time.

That’s about it. If you’re not looking to borrow money, apply for a job or get a new apartment then your credit score doesn’t matter. Even so, it always pays to pay bills on time. Getting behind on financial obligations is a lose-lose situation we all do well to avoid.