Your credit score is more than just a number. It is the lifeblood to your financial opportunities. You should be aware of how a good credit score can get your loans approved fast, can get you a lower interest rate, and save you money in the long run. However, there is likely a lot you don’t know, mainly how far reaching your credit score is.
Costs of a Poor Credit Score
- Cell Phone: When upgrading your phone or moving to any cellular plan, the provider is most likely conducting a credit check. If your score is poor, your options could be limited. A credit score is an indication of how reliable you are as a consumer. If your credit report shows regular missed payments, what is to stop you from missing your cell payment?
- Rent: Everyone knows that you need a good score to consider getting approved for a mortgage. However, a poor score can also impact your renting options as well. The same with cell phones, your report is a sign of how responsible you are.
- Utilities: Most utility companies require an upfront deposit. Having poor credit may require you to have to pay more money upfront than someone with good credit.
- Car Insurance: Most car insurance companies are now using your credit score. Driver history and experience is still a factor. However, when it comes to car insurance premiums, most companies have found that a credit core can also help gauge reliability.
As we have shown, your credit score reaches farther than just loan approval and interest rates. This is why it is important to take necessary steps to repair your credit now.