More than 60% of Americans are not sure what a credit score is. Only about 30% of Americans check more than one credit score a year. Most people don't know how credit scores are calculated, and they don't know what to do to improve. With all the contradictory advice and information about credit scores, it's hard to determine – is credit score related?

So – is the credit score related?

Your credit score is not all about financial health, but it is a good indicator of how well you are performing. It turns out that a worse credit score can also be very expensive. The unexpected costs of bad credit scores add up. You may also be ineligible to apply for a loan or mobile plan.

If you are still thinking, "Is my credit score related?", read on! This week, we will give you eight reasons to care about your credit score.

1: Access to Borrowing

Whether you need a car loan, a new credit card or a mortgage, your credit score is an important factor that creditors consider when deciding whether to approve you. Your credit score indicates that you have the ability and the possibility to pay off your debts on time, so poor credit history can be a dangerous sign for creditors. You may not want to buy a house or car right now, but it's hard to make a big improvement on your credit score quickly. It's now easier to build and maintain good credit so you don't get into trouble and can't get a loan when you need a loan.

2: Rental apartment

If you are not worried about mortgages, chances are that you need to rent an apartment. When your potential landlord decides who to rent to, they want to make sure to choose someone who pays on time. Again, they will use your credit score to measure the reliability of your rent. In some cases, your credit score may be enough for the landlord to not rent to you at all. In other cases, the landlord may need a prepaid rent for a few months, or a higher margin.

3: Lower insurance rate

If your credit score is lower than a good score, you will actually spend more on auto insurance. The insurance company gets the information from your credit report and calculates a separate rating based on your credit score. Then they use this information to calculate your insurance premium. The exact amount that will cost you depends on your family status, your credit history and your driving record. For example, a New Yorker with a good credit score and a clean driving record pays $255 a year, which is more than someone with a good credit score. Excellent credit scores can save you a lot of insurance costs every year!

4: Lower mortgage interest rate

A better credit score will also give you a better mortgage rate. This means that during your mortgage process, you will save a lot of money with a higher credit score. A report from Lending Tree shows that increasing the credit score from 719 to 760+ during the mortgage process can save nearly $15,000. The lower your credit score, the more you can save through improvement.

5: Better mobile phone plan

Mobile phone providers like to sell reasonably priced deals on their mobile plans. What do they tell you? If the credit is not good, you may not be eligible to participate in these transactions at all. Most vendors perform a rigorous credit check when you sign up for the program, which affects your eligible program and the amount you will pay. If you don't have good credit, you will need to pay more for the advance payment and may end up with a longer return plan.

6: Access to cable and internet plans

Like mobile phone providers, most cable and internet providers also check your credit score. Depending on your score, some vendors may choose not to serve you, although this is usually not the case. In most cases, the provider uses your credit score to determine the size of your initial deposit (if any).

7: Employment

Sometimes your credit history can even affect your ability to find a job. Employer credit checks are completely legal and usually allow employers to access modified versions of credit reports. Although employers won't see your credit score or account number, they will see if you have a lot of debt, overdue payments or high credit utilization. Maintaining a good reputation will help you show your best self in the interview!

8: Get a better credit card

This seems counterintuitive, but in fact you need to have a good credit score that has been approved as the best reward for credit card, allowance and interest rate. The more your credit score increases, the better you will get a better credit card and the extra benefits that come with it. These rewards can save you a lot of money over time, so using these cards is worth it.