We all know that keeping our credit score as high as possible can be very beneficial financially, but few know how our credit score really affects different areas of our lives. Your credit score may be reviewed by many different entities over your life and can be used to qualify or disqualify you for a wide variety of purposes. People that have a poor credit score may not even realize that their credit score was the reason why they were unable to obtain the things that they want or that they are paying much more for something than they would pay if their credit score were higher. Here are some of the benefits that a high credit score can bring you.
Housing
Many people know that their credit score can affect their ability to get a mortgage loan to purchase a house, but fewer know that their credit score can cause them to be denied a rental opportunity. Property owners that rent out houses and condos regularly check the credit scores of new applicants to assess their responsibility for paying their bills on time. Landlords that rent apartments also perform credit checks on applicants and have the right to deny apartments to applicants with poor credit scores. Keeping your credit score high can ensure that you will be able to obtain the type of housing you need when it is needed.
Employment
Your credit score can have a significant impact on your employment opportunities. Many employers run credit checks on their applicants before they are hired to work with money or sensitive, proprietary materials. Employees that would like to move to a position within the company that has more responsibility or authority may find that they need to pass a new credit check before they can be offered the job. Keeping your credit score high ensures that you will not be turned down for a job you are pursuing simply because your credit score is too low.
Financial Products
While everyone knows that a credit score affects the interest rate you are charged for loans and credit cards, many do not realize that it can affect the price that you pay for other financial products as well. Your credit score may be used in the calculation of the premium rate you will pay for insurance products or the monthly cost of an auto lease. Because there are so many areas of your life that can be affected by your credit score, it is important to keep your credit score as high as you can to avoid unnecessary issues and qualify for the things that you need to improve your life.