We all know that your credit history plays an important role in your ability to obtain financing. Whether you are seeking a mortgage, an auto loan, or something as small as a store credit card lenders will review your credit to see if it's worth the risk to extend a loan to you. But is that the only reason that your credit history is important? Where else might your credit come into play (and if it's bad come back to bite you)?
It plays a factor in your insurance premiums:
Per this article found on Esurance.com, many insurers use credit-based insurance scores in most states. (MA, CA, HI have banned the practice) This not only plays a role in determining rates but also helps the company determine eligibility for payment plans. They use this because research has shown that credit scores can accurately predict accident potential. Statistically those with higher credit scores tend to have fewer accidents.
Potential employers may request to review your credit history:
Of course you have to sign a consent allowing them to but what impression would it give the employer if you refuse? As part of the Fair Credit Reporting Act if you are denied employment based on something on your credit report the employer must provide you with a copy for your review.
It could impact your ability to get licensed for certian careers:
An example of this is what I do. A review of my credit report was required to obtain a license to be a mortgage loan officer. Some states are harder on poor credit history than others.
So as you can see your credit history plays an important role in many aspects of your life. However, you have the right to request a copy of the credit report and review any negative information that led to any type of adverse action against you. That is true not only for denial of credit but denial of employment or insurance coverage.