8 Situations Where Your Credit History Is Requested

8 Situations Where Your Credit History Is Requested

In the US having a good credit score is important if you want to live a comfortable life. While your credit score was only relevant when looking to get credit a few years back, in today’s world it can affect your life in more ways than one.

When you get to see the number of different agencies and people that can access your numbers, it will be easier to see why improving your score, even if you have no immediate plans of buying a new car or home, is so important. Your investment of money and time will certainly pay off in the long run, as long as you do your best to maintain a clean score with the three major credit agencies.

Looking For A Job

Most employers in the U.S. perform credit and background checks as a mundane procedure for some, if not all company positions. However, there are four American states, including Oregon, which have limited the usage of credit reports by companies with some legislatures pushing for nationwide restrictions considering that bad credit scores are currently hindering job opportunities for so many Americans.

Looking To Rent An Apartment

Did you know that most of today’s property management companies are routinely conducting credit checks when reviewing potential tenants? Interestingly, more private property owners who process applications on their own are now opting to do the same thing. This is because conducting credit checks is making it easier for them to avoid renting out their properties to people who may have a hard time paying rent and other bills on time.

Financing Store Purchases

It is important to note that having a good credit score isn’t just necessary when you are thinking of buying a new car or a new house. Any form of financing, even a furniture or TV purchase, will usually require that you have a good credit score. If you don’t, expect either high interest rates or to be denied credit.

Getting A Student Loan

Thinking of furthering your studies? If you are, then your credit score does matter. Unless you are planning on paying tuition and all other expenses up front, then consider filling out a student loan application. Most lenders understand that graduates fresh out of high school haven’t yet had the time to build a score and are usually willing to lend them the money they need. However, most of them are not that forgiving when it comes to adults with a history of not making payments.

Applying For A Store Credit Card

When applying for a store or any other major credit card, your credit score will be considered to determine if you are eligible or not and if you are, the amount of money that can be extended to you. People with great credit scores tend to enjoy higher initial limits than those who have average scores.

Renting A Car

If you are thinking of renting a car in the near future, then it is important to note that your credit score may influence your pricing and options. This is crucial for most of these companies considering that they are handing you an asset that is worth thousands and want to know that it will be handled responsibly.

Pay As You Go Cell Phone Plans

While cheap, pay-as-you-go mobile phones and plans are a great way to stay in touch with people, investing in a better, smarter and more expensive model with usage commitment is advisable if you are a business person who is in constant contact with your customers and partners. However, if your credit score is not that good, then it is going to be hard to get such a device.

Your Utility Providers

At the same time, more utility providers now require their consumers to agree to have their credit checked before they can offer them their services.

Conclusion

It’s important to note that multiple credit inquires done within a short period of time can negatively impact your credit.

As you can tell by now, your credit score touches almost every single area of your life. It is, therefore, advisable that you consider obtaining your free annual credit report from Transunion, Equifax, and Experian and start addressing the negative aspects of each report. Taking charge of your credit will not only make you feel good about yourself but will also help improve your report, which can be beneficial before you need to fix things.

Carol Robson

Carol Robson is a retired social worker who believes in living simply, being ecologically friendly, and leaving a small footprint. For more helpful information for others looking to do the same, check out Tiny House Plans.

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