In this day and age, just about every facet of life is connected to your creditworthiness. It’s not just about buying a home or car anymore. Employers check credit reports to see if you are trustworthy. Insurance companies tie premiums to your credit rating. Even landlords check credit ratings to see if you pay your bills on time. Establishing credit helps you get the best deals of life’s big purchases.

Whenever a creditor views your credit history, it will appear as an inquiry on your credit report. Too many inquiries can lower your Credit Score, which may cause your credit application to be denied.

While most mortgage applicants know a good credit score is a key element for a loan approval, not everyone realizes raising your credit score by even a few points can make the difference between qualifying for a mortgage or not. In addition, if you are applying for a conventional mortgage rather than an FHA-insured home loan, you can pay a lower interest rate if you are able to boost your credit score into the next level.

Loophole to beat foreclosure by failing to pay your mortgage does not usually end up with you outright owning your home. In fact, that’s usually the exact opposite of what happens but a New Jersey man defaulted on his mortgage and ended up retaining ownership of his home, by court order.

The Strategy — the more credit accounts you have, the higher your available credit and the lower your credit utilization ratio. So when someone offers you the opportunity to apply for a store or credit card, always answer — “Yes, please!”