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
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.
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