Wednesday, January 29, 2014

How Credit Impacts Your Day-to-Day Life

Credit influences many things that affect our daily lives, including our home and job. Prepare your credit for apartment hunting, job applications, insurance shopping, and opening new utility accounts. 

 Apartments

Your credit report is often pulled by a landlord or rental agency as part of the review process. They will also check that the name, address, and employer on your report match what you put on your application.

Auto loans 

Your credit score commonly influences auto loan rates available to you.

Cell phones

Cell phone companies will check your credit score before deciding to grant you a service plan. People with credit issues may be asked to put down a large down payment or pay extra for a service contract.

Child support enforcement agencies

Child support enforcement agencies can check the credit histories and child support payment records of delinquent parents. Non-payment can damage credit scores.

Credit cards

When you apply for a new credit card, the company will review your credit score to see if you qualify and what terms you should receive. Credit card companies often review the credit scores of existing customers and in turn may adjust their rates.

Employers

Employers must get written permission before they can review an applicant's credit report. Usually employers review your credit report for major negative records or discrepancies.

Government assistance and licensing

Technically, any government agency can access limited information from your credit files without your permission (name, address, former addresses, current and former employers).

Insurance

Home and auto insurers commonly use consumer credit information along with your application data in determining rates and terms. In fact, more than 90% of auto insurance companies now use credit data.

Mortgages

Mortgage lenders usually review all three of your credit reports and credit scores as part of the application process.

Utility Accounts

Electricity, cable, and other utility companies may check your credit report with your permission when determining your rates. People with credit issues could be required to put down a deposit, add a co-signer, or pay higher rates for their utilities

2 comments:

  1. Way cool! Some extremely valid points! I appreciate you penning this post. Free credit score, check proves to be one of the most effective ideas to increase or improve your credit rating. As a matter of fact, there can be a number of errors in a credit report which can obstruct your fiscal flexibility. While some people may have the opinion that checking out the credit score can minimize the credit score but that's not true. Checking the credit score would not harm your credit score. In fact, the credit score check can improve the credit score of any individual.

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  2. Nice piece of information!! Obtaining your Free credit score gov report the moment a 12 months is an excellent way of managing your finances nicely and maintaining up with the specifications of the significant credit score bureaus. Keep on sharing!!!

    ReplyDelete