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How Credit Scores Impact Your Life

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How Credit Scores Impact Your Life

Your whole life you’ve been told your credit score is highly important and essential to keep track of through your adult years. But have you ever wondered how your credit score will impact different aspects of your life, from banking to buying a home?

This three-digit number is an evaluation of your credit history through a number between 301 and 850, and it lets lenders know if you’re really worthy of their money. The higher your number, the higher the likelihood of your ability to pay back their loan based on your financial transactions in the past. But what does this really impact?

1. It Can Impact Your Bills

Having a lower credit score an impact the price of your bills.

Cell phone providers such as Verizon (NYSE: VZ) and AT&T (NYSE: T), utility companies or really any company you purchase goods or have a subscription from may decide that your score is too low for their liking. This could result in them charging you fees and higher rates just in case you default on paying their bills. This is definitely something to keep in mind next time you sign up for a subscription, check out your credit score beforehand.

2. It Could Prevent You From Getting Hired

Wondering if you really botched the interview for your last job, or if your employer actually just ran a credit report on you afterwards? Employers in most states have the ability to check your credit score before making the decision to hire you. While this is not the exact same report that a potential lender will look at, it can demonstrate characteristics such as trustworthiness and check for theft or embezzlement.

4. It Could Keep You from Your Dream Home

If you’re looking to rent your next dream house or apartment, landlords take your credit score into consideration before allowing you to rent. An ideal landlord would hope to see your score is high and that your rent-to-income ratio is satisfactory. They may not feel like you can be trustworthy for paying your rent otherwise.

5. It Can End Your Ability To Get A Loan Approved

If you’re looking to take out a loan, a low credit score will negatively affect your ability to do so. The biggest factor in your auto-loan rate is said to be your credit score, so having a higher score could make or break your loan’s approval.

The Bottom Line

For all these reasons and more, it’s important to always monitor your credit. We suggest using MoneyLion for your online banking. Even users with low credit-scores can access a low-interest 5.99 percent APR loan to keep their savings progress on track.

These loans are accessible at anytime as a Plus member, without the need to reapply. Not only will this loan be deposited in seconds, but it has been proven by MoneyLion to raise members’ credit.

Posted-In: Education Opinion Personal Finance General Best of Benzinga

 

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