With recent responsibilities, I have taken the resolution to take my finances more seriously (sadly, which I have never!). With this, I have opened one more joint bank  account, applied for a joint credit card and this time, have not got with any pre-approved offers but selecting from couple of choices available. Thanks to my in-time credit card payments !

Honestly, being in US on working visa doesn’t leave much of a scope to have long term house mortgage but still there are other small loans, that I may need from time to time e.g. auto-loan. Everyone knows that we should maintain good credit score and it pays but after that things are blurred, confusing and facts are unknowns, if not to all then to most of them.

There are several kinds of credit cards available in the market based on cash back, fees, points, interest rates, balance transfers, other benefits. While there is no defined rule which is the best credit card for one, you should always check your needs and priorties of credit card e.g. I always pay my credit card bills on time, have a separate savings account to check unwanted events in life and thus don’t need a 0% balance transfer card, howsoever tempting the offer is. Similarly, even if there is a credit card that matches your needs, always ensure that you read the disclosures properly.

Your credit card is more important than you think . Apart from all the well known facts like you’ll get number of benefits like cash-back, free travel and hotel points, auto rental insurances , maintaining a good credit will invariably get you a loan with the low interest, quick processing of applications etc, there are several other facts too.

I was checking some report on MSN money, how a bad credit report might cost you a job and seriously affect your job hunt. Although I believe that this is overblowing credit score but this is the reality which we can’t deny. These days many companies have started checking the credit report (unfortunately, this is legal too!) and can deny a job outright based on bad credit report. Even though, I maintain a good credit score but I never know when some such thing happens when I have to squeeze my credit card and could not pay the bills in time, some medical emergency, it can be anything. While companies believe that bad credit scorers are poor decision makers in life and so is the probability of their cheating and theft with the company, I could not really coorelate this, but let that be altogether different discussion. Bottom line is bad credit report might cost you your job (if your company is looking for an excuse to fire you or is under financial stress!) and may dent your job-hunt.

Insurance rates are other major things for which you should maintain good credit score. I know that house mortgages companies are using them and so is perhaps auto-insurers. You have to pay a higher insurance quote if you have a bad credit past. I am not sure, what is dwelled in the future : more  electricity bills, phone bills because you could not pay your last bill on time !

I don’t know how many of us really care about credit score if we are in States for a shorter term (perhaps you can manage even without that !) but if you need financing here then you really need to be careful and maintain it. For long term aliens and even US citizens, it’s an absolute must. Another grimly funny thing is several out-of-the-box advices like going bankrupt from so many credit counsellors and debt relief programs, I really can’t start how bad the ideas are and you should not try this if there is any last hope. I have already quoted  one bad aspect above and ie difficult job hunting time. Rest in next post …

Photo credit: Jene