It is important to know how your credit score impacts you. This is because your credit score will be at the center of your most critical and substantial financial transactions like home loans, auto loans, student loans, and much more.
The truth of the matter is that most people don’t realize just how far-reaching and vital their credit score is. It impacts you at all major junctures in life where money is involved. For example, employers are now looking at credit scores to assess candidates – those with bad credit will be seen as less responsible and then predictably turned down. Subscription-based businesses of all sorts are also leveraging credit scores to turn away customers who pose a high risk of bad debts.
Make sure that you aren’t the next credit score casualty. Understanding the profound impact of credit on your life will motivate you to protect and boost your score.
Employment
This comes as a shocker for those who are blissfully oblivious of the all-encompassing and ominously long reach of that credit score. To be sure, not all employers check credit scores, but a growing number do. This will become the norm sooner than you think. Much like the GPA.
You might feel resentful and wonder what business the employer has prying into your financial life. Just think of all that could go wrong with a subpar credit score employee.
Persons with poor credit scores often fall into deep debt. This will no doubt take a toll on their personal lives and will eventually creep into their work life. Deeply indebted employees may be desperate enough to contemplate fraud.
Also, think about what your impression is for any person with a bad credit score. In all probability, it is not a good impression. A person with a lower credit score is invariably judged to be less than responsible. Those who are not scrupulous about paying back their debts are not the type that you want to deal with financially. Such persons may be even borderline dishonest or just plain lazy. Whatever the exact problem is, you can be almost certain that it is a major one. Employers don’t want to hire such high-risk and potentially problematic persons.
Home And Car Insurance
This one is more obvious. If your credit score is less than ideal no lender will be willing to extend huge sums of cash for, they fear that they won’t get their money back. Hence, people with bad credit can say goodbye to houses, cars, and the American Dream itself.
Utilities, Cell Phone Companies, And Subscription-Based Services
All these companies are mired in one big problem – bad debts. There will always be a certain percentage of customers that just don’t pay after availing of the service. This is bad news for companies that must boost the bottom line while remaining competitive. So how do they remediate this problem? By checking credit scores. They can reject subpar credit customers to mitigate the risk of bad debts.
Credit scores are like crystal balls that allow these companies to accurately predict bad debt customers and keep them away.
Bottom Line
Knowing how your credit score impacts you is imperative for financial success. It will give you the impetus necessary for boosting your credit score.