Stated by different credit repair companies, whether you like it or not, your credit score is the measure that’s used by lenders and even employers to see how trustworthy you are when it comes to money. Your credit score can affect your chances of getting a home, a vehicle, a major appliance or even a job. So you need to be aware of how credit affects your wallet, and why you need to stay on top of your credit score to see that it remains high.
Here are five things that are impacted by your credit.
1. Rent It’s becoming more common these days for landlords and apartment managers to check the credit scores of potential tenants. They may check to see if you have any outstanding debts that might hamper your ability to pay your rent. If you have a poor credit score, they may insist that you have a co-signer for your rental agreement or that you put down a larger deposit, or in the worst case scenario, they won’t rent you the apartment at all.
2. Utilities & Cell Phones Another area that is impacted by your credit score is trying to get utilities or cell phone service. If you’re buying a phone, the cell provider is going to do a credit check. A poor score means you may have to buy the phone outright, and the same holds for utilities. If the utility provider sees a low credit score, you may have to pay a large up-front deposit before you get service.
3. Career It might not seem fair, but your potential employer may check your credit report too. One reason they do this is to see if you’re the type of person who has massive debt, which may lead you to embezzle. Remember, though, that by law, your potential employer must have your written consent before pulling your credit report. Still, if your credit score is terrible, you may not be able to get the job you want or advance your career.
4. Student Loans Let’s say you want to back to school to further your education; you might find it difficult or impossible with bad credit because you won’t be able to get student loans unless you’re dealing with Stafford, Perkins or PLUS, which don’t require a credit score.
5. Mortgages & Car Loans If you want to buy a house or a new vehicle, your credit score is going to determine if you’re able to do that and what kind of deal you’re going to get. If you have an awful credit score, you may not be approved, and if you are, you’re probably going to be stuck with horribly high interest rates.
Having bad credit can stand in the way of improving your life in all sorts of ways. If you have bad credit, the good news is that you can take steps to start your credit repair as we speak. It won’t be easy, but with time and diligence, you’ll have that score up in no time.
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