Even if you’re not fully up to speed on the importance and significance of your credit score, you should have some general minimal understanding of just how important that three-digit number is. Yes, you should at least know that it’ll play a role in whether or not you’re approved for a loan as well as the interest rate on said loan. But you might be surprised at the various other ways a credit score can impact your life. While you should always want to qualify for the best interest rates on loans, what we’re about to tell you is even more motivation to whip your credit score into shape.
5 Ways Your Credit Score Can Affect Your Life
- Your love life: We’ll kick off this list with arguably the most surprising one. Yes, your credit score may impact your love life. New research shows that when people are evaluating romantic partners these days they tend to choose someone with a similar financial situation. A good situation – and a good credit score – seems to indicate a reliable, trustworthy partner.
- Insurance: Poor credit scores don’t just reveal potential unreliability, but research shows that the lower a consumer’s credit score, the more likely they are to file a claim. For this reason, consumers with low credit scores will likely pay higher insurance premiums.
- Employment: Are you a finalist for your dream job? Let’s hope you have good credit, too. Though laws vary by state, most employers have the ability to run credit reports on potential employees. Being that good credit scores typically signify trustworthiness, bad credit scores tend to reflect the opposite. According to some reports, nearly half of all employers run credit checks on prospective employees.
- Your utilities: You expect water, electricity, and heat at your home, but you may not realize that if your credit is poor, you could be paying more for it. Like we’ve noted in many of the other examples here, if your credit score is low, you’re perceived as more of a risk. The utility companies want their money, and charging higher fees is how they help make up for any possible missed or late payments.
- Your apartment: Many people assume that a mortgage is the only living situation-related thing a good credit score is important for. However, if you’re renting an apartment, your landlord will be looking at your score before approving you as a tenant too. That’s because landlords want their money – it’s far better for them than issuing evictions or taking tenants to court. If your credit report indicates a poor history, you’ll likely pay more in rent – if you’re approved at all.