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Why does my credit score matter?

Why does my credit score matter?

Why does my credit score matter?

It might not seem like it at first, but credit is important for a lot of different things in life.

It might not seem like it at first, but credit is important for a lot of different things in life.

It might not seem like it at first, but credit is important for a lot of different things in life.

Apr 6, 2023

Sam Lipscomb

6

min

In all likelihood, whether you’re rich or not, it will make sense to borrow money throughout the course of your life. Whether that’s to buy a car, buy a house, or even pay for education. Even if you have lots of cash, it often doesn’t make sense to pay for any of these things completely up front. But borrowing money isn’t free. And the person or entity that’s lending you money is going to charge you. This is where credit scores come in.

The equation is pretty simple. The higher your credit score, the less you’re going to be charged to borrow money. Since it can be difficult to pay for an entire home or an entire new car in one sitting, you’re going to want to borrow money for as cheap as possible.

A higher credit score also tends to mean that someone is more willing to lend you money. If you don’t have any credit, or if your credit isn’t very good, you may not be able to borrow money at all. For example, if you use credit card responsibly, you don’t actually have to pay any interest at all. But if you don’t have a good credit score, you may not even be able to get the credit card you want.

For a deeper dive on why your credit score matters and how a higher credit score can make borrowing money cheaper, check out our deeper dive into interest rates and APRs.

Sam Lipscomb

Author bio

Sam is a Kenyon College alum and is head of content at Fizz. He's been a go to personal finance resource among his peers since getting his first credit card during his sophomore year of college. He hails from Washington, DC, loves all things aviation, and currently lives in Los Angeles.

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ShoulderTap Technologies, Inc. d/b/a Fizz © 2024.


40 Wooster Street, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024. 40 Wooster Street, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.


ShoulderTap Technologies, Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.


Fizz Members may choose to apply for a Fizz Card, but are not required to. Fizz Membership does not guarantee access to a Fizz Card. Application and eligibility restrictions apply. Over $300 in annual value of Fizz Card based on cash value available to Fizz Card users assuming half of all available rewards and promotions are used. Actual results may vary.


Fizz cardholders: Fizz reports your payment history on the revolving, open-end line of credit accessed by your Fizz Card. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®  and Transunion® .
For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.


Selected customers reviews above describe individual experiences or results. Individuals in TikTok videos featured above are paid spokespeople. Selected customer reviews above describe individual experiences or results. Actual results may vary. App Store rating as of September 2024.


Credit score sliding scale feature is for informational purposes only. Credit score ranges based on information available on RentSpree. Car loan figures assume a loan value of $30,000 over 72 months and based on information available on CNN. Student loan figures assumes a $35,000 private student loan with a 10-year term and based on information available on CNBC, NerdWallet and Credible. Apartment approval based on information available on BI and RentSpree.


For people with disabilities, including those who are visually impaired, deaf, or hard of hearing, we accept messages via our in-app chat, emails at [email protected], and calls on our answering machine at (940) 260-2704. If you leave us a voicemail, please leave your name and number and a member of our customer support team will return your call.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024.


40 Wooster Street, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024. 40 Wooster Street, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.


ShoulderTap Technologies, Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.


Fizz Members may choose to apply for a Fizz Card, but are not required to. Fizz Membership does not guarantee access to a Fizz Card. Application and eligibility restrictions apply. Over $300 in annual value of Fizz Card based on cash value available to Fizz Card users assuming half of all available rewards and promotions are used. Actual results may vary.


Fizz cardholders: Fizz reports your payment history on the revolving, open-end line of credit accessed by your Fizz Card. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®  and Transunion® .
For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.


Selected customers reviews above describe individual experiences or results. Individuals in TikTok videos featured above are paid spokespeople. Selected customer reviews above describe individual experiences or results. Actual results may vary. App Store rating as of September 2024.


Credit score sliding scale feature is for informational purposes only. Credit score ranges based on information available on RentSpree. Car loan figures assume a loan value of $30,000 over 72 months and based on information available on CNN. Student loan figures assumes a $35,000 private student loan with a 10-year term and based on information available on CNBC, NerdWallet and Credible. Apartment approval based on information available on BI and RentSpree.


For people with disabilities, including those who are visually impaired, deaf, or hard of hearing, we accept messages via our in-app chat, emails at [email protected], and calls on our answering machine at (940) 260-2704. If you leave us a voicemail, please leave your name and number and a member of our customer support team will return your call.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024.


40 Wooster Street, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024. 40 Wooster Street, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.


ShoulderTap Technologies, Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.


Fizz Members may choose to apply for a Fizz Card, but are not required to. Fizz Membership does not guarantee access to a Fizz Card. Application and eligibility restrictions apply. Over $300 in annual value of Fizz Card based on cash value available to Fizz Card users assuming half of all available rewards and promotions are used. Actual results may vary.


Fizz cardholders: Fizz reports your payment history on the revolving, open-end line of credit accessed by your Fizz Card. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®  and Transunion® .
For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.


Selected customers reviews above describe individual experiences or results. Individuals in TikTok videos featured above are paid spokespeople. Selected customer reviews above describe individual experiences or results. Actual results may vary. App Store rating as of September 2024.


Credit score sliding scale feature is for informational purposes only. Credit score ranges based on information available on RentSpree. Car loan figures assume a loan value of $30,000 over 72 months and based on information available on CNN. Student loan figures assumes a $35,000 private student loan with a 10-year term and based on information available on CNBC, NerdWallet and Credible. Apartment approval based on information available on BI and RentSpree.


For people with disabilities, including those who are visually impaired, deaf, or hard of hearing, we accept messages via our in-app chat, emails at [email protected], and calls on our answering machine at (940) 260-2704. If you leave us a voicemail, please leave your name and number and a member of our customer support team will return your call.