We are becoming increasingly dependent on using credit to make purchases and decisions. These days, good credit is used for more than just getting a credit card or a loan. More and more businesses are making the case that you must have good credit before they extend products or services to you.
- Housing 每 your good credit is critical when it comes to securing a mortgage (particularly in this market) for the purchase a home. Mortgage lenders want to know that you won't default on your mortgage. If you don't have good credit, the lender will consider it risky to give you a mortgage loan.
Your credit is used for rental decisions, too. Landlords consider your lease as a loan. You're being loaned a place to live and the landlord wants to know you＊ll pay back this loan. If you don't have good credit, you can get denied for an apartment.
- Transportation 每 Time to buy a new car? Tough to do without either cash or the ability to secure a loan. A credit review here will determine how high the interest rate will be and whether or not you get approved in the first place.
- Employment 每 these days, many employers are relying on a credit report to assist in understanding the habits of a potential candidate. Is the person dependable? Responsible? Do they have a good track record? Without good credit, you could be blocking yourself from better opportunities.
- Insurance 每 In many cases, the rates you are offered by insurance companies are partially based on your credit score. The weaker the score, the higher the rate.
- Loan potential 每 Need extra cash? Want to venture out on your own to start a new business? Perhaps you or a child needs a student loan? Among other things, you need to have good credit to qualify for these loans.
- Utility Services 每 It might be somewhat shocking to learn that your credit is needed to establish utility service. Your electric company contends that you＊re borrowing one month of electric service. So, before turning on your electricity, the company will check to see if you have good credit. This applies to most utility services including cable, telephone, water, and even cell phone.
As you likely noticed, credit affects the outcome of many of life events. Bad credit has the ability to make life more difficult and, let's be honest, who needs that? At the very least, bad credit makes life more expensive! It has the ability to hold people back from their goals and aspirations.