You already know that your credit score will affect your interest rates for loans, or whether or not you will even be approved for a loan, but did you know that your credit score affects more than just your ability to borrow money?
Your credit score and credit report tells your financial history, and more importantly whether or not you’re good at making payments on time and in full. Your ability to make prompt and complete payments is important to more than just those from whom you seek home or auto loans. Here are five other ways your credit score and history affect your way of living.
One of your biggest monthly payments is usually for your home. If you don’t have a mortgage, you might not have thought that your credit score mattered much when it came to your living arrangement, but landlords are very much interested in your ability to pay rent on time. Most rental applications will include a credit check, and a low credit score or a short credit history may result in a bigger deposit or even being turned down for a property.
2. Cell Phone Companies
Smartphones are essentially mini computers these days, and their price tags reflect that. With most smartphones costing hundreds of dollars, many people opt for paying monthly for their phones as a part of their phone plan. Most cell phone companies will want to make sure you’ll be good for your monthly payments, so they’ll run a credit check before they let you walk out with your new smartphone.
3. Utility Companies
While they are not allowed to turn away customers, utility companies that provide you with water, trash, electrical, and gas services may check your credit before arranging service, and require you to pay a substantial deposit, worth a few months of service. However, good credit may save you hundreds of dollars in this regard.
4. Job Interviews
Believe it or not, your potential employer may take a peek at your credit report to see where you stand against your competitors. When so many applicants are educated and qualified, the final determinant could be financial responsibility, which can give an employer an idea of how well you meet deadlines or how impulsive your behavior may be. Don’t let your credit score prevent you from landing your dream job.
5. Car Insurance
Did you know that those with low credit scores tend to file more car insurance claims than those with high credit scores? Not only have that, but those with lower income tend to file more small claims because they lack the extra funds to cover small repairs themselves. Insurance companies need to make sure their clients make their payments on time and don’t file excessive claims, so don’t be surprised if you only qualify for high rates or don’t qualify at all if your credit score is sub par.