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scores of 680 or above to consider you for low down-payment programs. But you can still get an FHA backed government loan with a score of 580 or above.

The bottom line is, the higher your score, the more options will be available to you. And the less expensive the cost of credit available to you means you pay less for the things you buy. A lower credit score will inflate the cost of the credit available to you and therefore increasing the cost of whatever you buy.

The rules regarding credit continue to change. Even if you pay one credit card account perfectly, other companies you have accounts with can check your credit report. If they find you are behind or late on another account, they can increase your interest rate and/or lower the amount of your credit line.

Making matters even more complex is the fact that nearly 80% of credit reports have errors on them, and identity theft is an ever-increasing concern.

A good credit rating is more important than ever. It provides you CHOICES in your lifestyle. Your financial management can affect the kind of car your drive, the home you live in, and even what job you have. Employers are looking at your credit report when they consider you for a new job position. Insurance companies consider your credit in providing insurance quotes. And it's not unheard of that if you're looking for a mate, a good credit rating could expand your possibilities in that department too!

Beyond these obvious things, good credit positions you better for every aspect of your future; even your eventual retirement.

Poor credit costs you. It costs you time, money, convenience, freedom of choice, and perhaps even a good job. So make good choices, get disciplined, operate on a budget, and pay your bills. Your credit score will reflect these things; and so will your lifestyle.

Learn more about this author, Lisa Orme.
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