100,000+ views

1 min

These days no one can afford to blow off their credit score.

You may think you’re a responsible consumer by sticking to cash and debit purchases, but failing to establish a strong credit history can hurt you in ways you didn’t even realize possible.

Here are four unexpected yet major aspects of your life that are largely affected by your credit:

 1. Your job search

 Your job search

Under the Fair Credit Reporting Act, it is legal for prospective employers to look at your credit report (with your permission) and take that information into account when deciding whether or not to hire you.

A history of late or delinquent payments will likely raise a red flag. If you’re not dependable as a consumer, how will you be dependable as an employee?

2. Your rental possibilities

It’s not just purchasing a home that necessitates a good credit score. Landlords want to see you have a history of paying your bills on time.

In today’s competitive rental market, having a high credit score can set you apart from other interested parties. The higher your score, the more attractive you become as a tenant.

3. Your insurance

Some insurers see a correlation between low credit scores and high claims. They may use information from your credit report to decide your eligibility for coverage and at what rate.

Auto and homeowner insurers use this information most often, though other types of insurers may adapt the use of credit scores for setting rates in the near future.

4. Your personal relationships

Maybe you don’t care about your credit, but your significant other might. If you want to have a serious future, your poor credit has the potential to bring you both down.

Not only might your partner find a history of unpaid debts and poor borrowing unattractive, but qualifying for financing together in the future, whether it’s a loan for a car or home, will cost you both much more in high interest rates if you have poor credit.

When it comes right down to it, poor credit can be a deal-breaker.

Whether you like it or not, your credit score affects many crucial aspects of your life. Start establishing a strong credit history now so it’ll work for instead of against you.

Photo credits: http://youqueen.com/; http://memeguy.com/; http://media.npr.org/;
http://www.rocklandtimes.com/; http://a.dilcdn.com/

Advertiser Disclosure

BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.

Our Editorial Review Policy

Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the content’s accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our site’s advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our site’s About page.

About The Author

Stefanie O'Connell is a New York City personal finance writer who lives by making her budget stretch. She shares financial planning, investing, and spending advice with national media outlets, including Bustle, US News and World Report, GoBankingRates, Intuit, CBS News, The Dr. Oz Show, and numerous other finance sites, shows, and podcasts. A graduate of New York University, Stefanie discovered the world of financial planning out of necessity. Her passion lies in helping millennials "develop rich habits" they can use for life.

« Back to: Blog