Why a Good Credit Score Matters (Even If You Don't Plan to Borrow)

I know my credit score matters for lots of things beyond borrowing money.

I don't plan to borrow money anytime soon. I recently refinanced my mortgage, and I don't like to borrow for anything other than buying a home, so I don't anticipate taking out other loans for years.

Despite that, I care a lot about maintaining a stellar credit score. There are four big reasons why.

1. I want to be able to take advantage of opportunities

Although I don't plan to borrow soon, there's always a possibility that could change. That could happen, for example, if mortgage rates drop dramatically and I decide to refinance again. While that's unlikely, no one expected them to drop as much as they did last year, so there's always a chance. It could also happen if there's a great credit card bonus offer available that I decide to pursue.

I don't want any doors to be closed to me because I have a low credit score.

2. My credit score affects my insurance costs

Insurance premiums aren't my idea of a fun way to spend my money, although I realize it's important to be covered. Since I know insurers take credit into account when setting premiums, I want my credit score to be great and my credit history to be stellar so I won't pay more for the protection I need.

3. I don't want to make larger deposits for utilities

I'll sign up for electricity and internet soon, when the construction of my new house is finished. And I've changed internet and cell phone companies several times in the last few years to get the best prices. Each time, the companies I hoped to do business with checked my credit. My ability to get an account -- and the deposit I had to make -- was determined by my report and score.

I don't want to be denied a cell phone contract or have to put more money down up front, and maintaining a good credit score helps ensure that doesn't happen.

4. I don't want to lose employment opportunities

Many employers check people's credit before hiring. While I don't plan to apply for new jobs soon, I also know it can take time to improve your credit. If I need to look for new work, I don't want black marks on my credit report or a negative credit history to affect my ability to get hired.

While credit matters for loans, it also affects many other aspects of your personal finances. So it's worth maintaining a good credit record by managing debt well and paying your bills on time.