Your credit score is a very important piece of financial information that can have a dramatic effect on your life. There are many different reasons why someone that you are interested in doing business with may check your credit score and the number that they find may or may not persuade them to do business with you. A bad credit score can affect many areas your life so it is in your best interest to do what you can to keep your credit score as high as possible. Here are some ways that a bad credit score can affect your life.
Your Personal Transportation
Obtaining a personal motorized vehicle, such as a car, truck, or motorcycle, can be difficult if you have a bad credit score. You may not qualify for an auto loan at a traditional vehicle dealerships, so you must seek a vehicle from a ‘buy here, pay here’ dealership that will charge much higher interest rates for lesser quality vehicles. Some individuals with a bad credit score are forced to purchase their vehicles on the secondary market where they pay significantly more than the vehicle is worth to obtain reliable transportation.
Your Job
If you have a bad credit score, it can limit your job opportunities. Many employers have a minimum credit score they will accept for individuals in management positions or positions of trust within the company and a bad credit score automatically disqualifies applicants from certain types of employment. These employers state that a person’s credit score is a good indication of their responsibility level and they have the right to refuse to hire anyone that does not meet their standards for the position. Having a bad credit score can also result in being passed over for a promotion or triggering a demotion to a job that requires less responsibility.
Where You Live
Your ability to get a home can also be affected by a bad credit score. Not only will you not qualify for a mortgage, you may also be turned down for renting a home or an apartment. Landlords pull the credit reports of rental applicants to see that the renter will honor their obligations because they want to be reassured that they will receive their payments on time. If your credit score is bad, you may be limited to living in certain areas of your city that may not be the most desirable option for you.
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I was just having a conversation today about credit scores with one of my roommates! They know it’s important but just aren’t building any credit. I tried to point out that it will definitely limit their options if they ever want to move or get a financed car…I hope they listened. I didn’t even think about mentioning that some jobs check your credit now…
The ability of companies to check your credit score before extending a job offer or a promotion makes keeping your credit score as high as possible even more important. Your credit score can affect too many different areas of your life to be taken lightly.