How Your Credit Score Impacts More Than Your Home Loan
A good credit score is key when applying for a credit card or loan, but many people do not realize that credit and financial institutions are not the only ones that may be interested in your credit score. Maintaining a good credit history is not only good for your wallet, but may also improve your lifestyle. Check out the ways your credit score can impact your everyday life.
Homeowner’s, renter’s, auto, and life insurance rates include your credit score as part of the overall insurance score. Your insurance score calculates the probability of future claims which ultimately affects the premium you pay for coverage.
Cell Phone and Utility Companies
When applying for cell phone service or utilities, your good credit history may factor into whether or not you will owe additional fees or deposits at initial account set up. Additionally, for cell phone plans, your credit score may affect pricing plans for which you are eligible. For those working on increasing their credit score, there is some good news. Your credit score does not affect the monthly rate you will pay for utilities.
Landlords have an obvious interest in knowing whether or not you are likely to pay rent on time. This is why most rental applications include a credit check requirement. A lower credit score could prevent you from living in your first choice of residence.
Many businesses now require consent for a credit check as part of the application process. Your credit history may be an indicator of how trustworthy, responsible, and organized you are. It may also factor heavily for careers that handle money or involve positions of authority such as law enforcement.
Rest assured that entities must have a business-related need to be granted access to your credit history, and almost all require consent from the applicant. Credit history information is also modified based on the reason for the request. For example, the content released on a credit inquiry for a mortgage loan will vary from the content released on a credit inquiry from a potential employer.
To minimize the impact your credit score may have upon your daily life, visit https://www.amerisbank.com/tools-resources/managing-credit/credit-tips/ for tips to improve your credit.
All loans subject to credit approval.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.