From credit cards and auto loans to home loans and personal loans, creditors now want clear proof that you are a good credit risk; and your FICO score is often the first thing they look at to determine this.

Here are the four top four reasons why your FICO score is now more important than ever:

1. Your ability to purchase a car or home relies on it – Don’t even think about snagging an auto loan or a home loan if your FICO score isn’t exemplary. Creditors use to give loans to even those with poor credit; they simply charged them more in interest and finance charges. However, today’s credit industry is decidedly different, and individuals with poor credit scores are no longer squeaking by. Instead, only those individuals who have proven themselves to be great credit risks are getting the loans.
2. Your ability to save on finance charges relies on it – Many credit card companies are willing to give credit cards to individuals with lower FICO scores, but they certainly tack on high interest rates to go along with them. Although individuals with very low FICO scores can not get any type of credit card (unless it is secured), only those individuals with the best credit are now getting the lowest interest rates.
3. Your ability to have access to credit relies on it – Having access to credit is highly useful for most individuals. From purchasing a vehicle to using a credit card in the event of an emergency, most all of us are thankful for being able to have access to open credit. However, in today’s economy, only those with strong FICO scores will be afforded this luxury.
4. Your ability to obtain a great job may rely on it – Just when you think it can’t get any worse regarding your FICO score, employers are now looking at applicants’ FICO scores to determine if they are trustworthy and responsible.

Have you considered using your credit card to make home improvements; to take a family vacation; to purchase household appliances or furniture; or to purchase a computer? All of these types of purchases can be made using your low-interest credit card!

There are plenty of perks for using your credit card to make large purchases, including:

• No loan application – If you are looking to make a large purchase on credit you will need to deal with the hassle of a loan application; either for a car loan, a personal loan or another credit card. However, if you have an existing credit card with a high credit limit and a low interest rate, you can make your purchase and avoid the frustration of filling out a loan application.
• More competitive interest rates – Many personal loans, auto loans and retail credit cards charge shockingly high interest rates; whereas, your credit card will likely have a more competitive interest rate. Compare the interest rates for a personal loan, as well as your credit card, and you may be very surprised to see that your credit card may offer a much lower interest rate.
• Convenience checks – There is no better way to make a large purchase than to simply write out a check. Many credit card companies send convenience checks to their outstanding customers, along with special offers and promotions. For example, it is not uncommon to receive a special convenience check promotion with a low, fixed interest rate until the loan is paid off.
• Easy repayment terms – Your credit card will likely boast easy repayment terms which allow you to prepay without a penalty. Most credit cards have simple, straightforward terms and conditions, as well.