If you read my last blog post, you know what a good credit score is & what causes your score to increase and/or decrease. But what the heck is a credit score used for? Read on for some surprising companies who use your credit score & why.
BANKS - Most obviously, banks will use your credit score to determine if you qualify for a loan, & at what interest rate. The better your score, the less interest you will pay.
INSURANCE COMPANIES - They will use your credit score to determine your home & auto loan premiums! Who knew?!
LANDLORDS - If you are looking to rent, your potential landlord will check your credit score & use that, along with your income, to determine if you quality to rent from them.
CELL PHONE COMPANIES - Most cell phone companies will check your credit score, & some will even use your score to determine your plan rate.
UTILITY COMPANIES - This really only applies to when you are moving & turning on gas & electric at a new address. They will use your score to determine if you will be charged a deposit before turning on service.
EMPLOYERS - About 1/3 of all companies will do a credit check on some candidates. Employers technically cannot see your actual score, but can see your credit history. They use this information to determine how a potential candidate handles responsibility - late payments really matter here. And some jobs require a good credit history to qualify.
Overall, you will be paying more, & possibly missing out on things you want to do, if your credit score is on the lower end. If you keep your credit score at or above a 760, you should qualify for pretty much everything you want at the best price.