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The Unexpected Ways a Bad Credit Score Messes With Your Life

The Unexpected Ways a Bad Credit Score Messes With Your Life
Written by Publishing Team

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Although you may think of credit scores as a procedural or destructive metric in qualifying for mortgages or auto loans, they also affect other areas of your life as well. Here’s a look at some less-Known ways Bad credit or a spotty credit history can cost you more money.

  • Rental requests: Many landlords and landlords require your financial information to prove that you are a reliable tenant who can make your rental payments on time. Often they will do a credit check, although some have settled proof of income or previous rent payments with another property owner. While there is no agreed standard by which an apartment can be refused, one study indicates that Degree less than 600 It could jeopardize your rental application.
  • Car insurance rates: In almost all states, auto insurance companies can use your credit score to determine your insurance rates. As Value Penguin . reportsFor the same type of insurance, having a poor credit score can cost you twice as much as you’d pay with a good credit score, with a total average of $2,940.
  • Services: The gas, electricity and water companies will check your balance before they allow you to sign up for their services. In rare cases, they may refuse to serve you because of a poor credit score, but they will likely insist on a deposit or a letter from someone agreeing to pay your bill if you don’t. If you are under threat of shutting down services, you have a few options through condition or Sweetened Consumer Protection Office.
  • Wireless phone plans: As with utilities, the phone company can insist on a deposit or put you into a prepaid plan if they don’t like your credit history.
  • designation: Sometimes (but not always) your employer does a background check that can include a look at a summary of your credit history (although they can’t see your actual credit score). This is more commonly done if you are expected to handle money as part of your job, but it is likely that they will reject you based on your credit history. If they do that, they The applicant must be notified And let them appeal the decision (because your credit history can have fixable errors).

A poor credit score can be costly, but the good news is that most flaws in your credit history will fall off your record after a few years. With good credit behavior, your credit score will improve. For more information on improving your score, check out This post is a Lifehacker.

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