Which is more important: Credit score or GPA?
As a young person starting your career and financial life, there are two numbers that are critical to your success: Your grade point average, or GPA, and your credit score. Both can help or hinder you from getting a job, and both are reflections of your hard work, organization, and commitment to your future.
Your GPA reflects how well you did in school. If your GPA is high, chances are you studied diligently, attended class, wrote good papers and did well on tests. This can show employers that you are prepared to go into your field, not only because of your knowledge of the subject matter, but because you can plan and manage your schedule well. A good GPA indicates a strong employment future because of a positive history.
Your credit score is also a reflection of your history, though not your track record at school, but rather your financial track record. Your credit score is a number between 300 and 850. It’s based on your history of paying on-time, outstanding balances in proportion to their credit limits, the length of your credit history, the amount of new credit you
have and what kinds of credit you use. A good credit score is an indicator of your creditworthiness and shows that you have been able to properly manage a budget.
Your credit score is used when you are trying to secure other lines of credit or loans. The higher your score, the better, as the lender views you as less of a credit risk. A low credit score can mean higher interest rates to offset the lender’s risk, or it can mean difficulty even getting credit or loans. Beyond that, some employers even look at your credit report and score when you are looking for a job. This means your credit score can affect your chances of employment especially if you are applying for jobs in the financial field.
The bottom line is this: Both your credit score and your GPA are really important numbers. Both indicate responsibility, good planning and management of time and money. Both your GPA and your credit score can affect your chances for employment so err on the side of caution and study hard and budget your money properly.
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