Each time you hear an ad on the radio or watch a commercial on television promoting free credit scores, you may need to pay attention rather than muting the jingle that will be stuck in your head for hours.
Whether you like it or not, your credit score matters and it will inevitably affect many parts of your life. Not only is credit significant when you’re making a big purchase, but your credit history is also a factor in everyday situations.
A recent article on the Equifax Finance Blog, “Mythbusters: How Credit Impacts Your Daily Life,” discusses the importance of your credit score and the ways that your score could potentially impact your ability to make purchases, rent apartments or even get a new job.
- Credit plays a role in the rental of your apartment. As many as 65 to 70 percent of landlords may pull the credit report and credit score of a potential tenant. A landlord may be more lenient about credit issues related to medical bills or student loans, but if you have missed rent payments in the past, you may not be eligible to rent the apartment you want.
- Your credit score may affect your ability to secure utilities. You’ll need the lights, gas and water turned on as soon as you move into your apartment. A poor credit history may make it more difficult for you to get serviced by utility companies. You may still be able to get the water running, but you may face putting down a large deposit in addition to your regular monthly bill if you have poor credit.
- Signing up for a cell phone plan can be made more difficult due to a poor credit score. Two of the major U.S. networks currently have strict credit requirements for their two-year contracts. Even the companies that are relaxing the credit requirements still want to see that you’ve paid your bills for a full year before they’ll qualify you for a phone.
- Your credit history is readily available to potential employers. Federal law allows potential and current employers to view a modified version of your credit report for hiring and promoting purposes. Some industries such as financial services and healthcare take advantage of this more frequently because of the sensitive nature of their employee access.
If you want to learn more about how credit impacts many parts of your everyday life, be sure to read the full article on the Equifax Finance Blog for more information.