No one likes to feel judged, but that is exactly what your credit reports and scores are designed for – to help others judge you. Specifically, your credit is routinely relied upon by many different businesses in many different industries to judge whether or not they wish to do business with you. Good credit can make your life much easier in more ways than you probably realize.
Most people understand that your credit is important whenever you apply for a new loan or credit card. If your credit contains certain red flags such as low scores, collection accounts, public records, or other derogatory information then some lenders will not want to do business with you at all. Yet there is a variety of other times when the condition of your credit will surprisingly be important as well. Keep reading below to learn more about some of the unexpected times your credit matters.
Employers often rely upon credit reports for employment screening purposes whenever you apply for a new job or promotion. Employers must have your written permission to pull your credit report and they will never access your credit score. That is a myth. However, even though an employer may not be viewing your actual credit scores, negative information on your credit reports could absolutely spell trouble whenever you apply for a new job. If you and another applicant are equally qualified for a position yet your credit is in bad shape and the other applicant has good credit…well, you get the picture.
Another surprising time when your credit matters is whenever you apply for new auto or home owner’s insurance coverage. Credit-based insurance scores are routinely used by insurance companies when determining whether or not to grant you coverage and, if so, the amount of your premium. Unfortunately people with bad credit have been statistically proven to file more insurance claims which is why the condition of your credit is relevant within the insurance industry. Your insurance premiums are just one more example of how improving your credit could potentially save you a bundle of money.
New Utility Services
When you apply to open a new mobile phone account, apply for satellite TV service, apply for cable, or even when you move and need to activate electric or gas service at your new home the condition of your credit will be relevant yet again. Bad credit might mean that you could be denied for cell phone coverage or that you will not have access to the attractive cable offer for new customers you heard advertised on TV. On the other hand with good credit qualifying for new service will generally be no problem and you are much more likely to have any initial deposit requirements waived as well. Another opportunity to save money yet again.
Applications for Housing
Naturally your credit matters whenever you apply for a loan to purchase a home. However, some consumers, especially young people, are surprised to learn that credit typically matters whenever you apply to rent a house or lease an apartment as well. If your credit reports and scores reveal a history of past credit management problems then a landlord or property manager may decide to deny your application. Keeping a roof over your head will generally be a much easier and less stressful task if you work hard toward earning the best credit possible.
One of the most surprising industries which relies upon your credit scores is the rental car industry. Most of the time your credit is not going to matter at all whenever you rent a vehicle. However, if you are trying to use a debit card to rent a vehicle instead of a major credit card then some rental companies will actually require a mandatory credit check before deciding whether or not to grant your request. If your credit is in bad shape your request to rent a vehicle might be denied.