When
you swipe that card, or issue that new loan, you rarely think of the ways that
single transaction is affecting you; how that single operation sets into motion
a chain of events that ultimately impacts more than just your personal
finances. It impacts your daily life.
Take
a look at these unexpected ways how your credit report – and subsequently – your
credit score impacts you:
1. Your Living Arrangement
It
is completely illegal for landlords to discriminate tenants on the basis of
their gender, sexual orientation, color or religion. However, it is perfectly
acceptable for them to turn you down based on their judgment of your inability
to pay the rent. If your credit report, in any way, indicates that you are an
inconsistent bill-payer, they may deduce that you will delay rent payments.
2. Your Student Loan
Student
loans have the reputation of being one of the easiest loans to achieve with the
most flexible repayment systems. That, however, has changed recently. While
repayments are still convenient, there’s a chance that your loan for your
college of choice may be denied if you have a low credit score.
3. Your Cell Phone Connection
Some
years ago, when you signed up for your cell phone contract, you enjoyed a good
credit score, and thus received an immediate approval on your cell phone
application. However, now, at the end of your contract, for whatever reason,
you decide to switch to another company. But because of the recession, your credit
score has taken a small hit recently. Don’t be surprised to find your new cell
phone company charging you a hefty deposit. They don’t think you’re reliable,
and they need to find ways to cover costs.
4. Higher Interests & Restrictive Terms On Approved Loans (Mortgage & Automobiles)
Getting
a loan might seem a lot like you’ve crossed the finish line. That tough part is
over with, right? Not if you have a poor credit score. In fact, the challenges
have only just begun. It won’t seem like much of a win if, with a low credit
score, you get unfavorable interest rates and deposits, along with restrictive
terms. A higher credit score, can and will, help you negotiate a better
mortgage interest rate.
The
impact can be substantial. For instance, with a questionable score, your
mortgage or automobile lender may most likely ask for a 15 to 20% of down
payment. That means, on a $250,000, you’re expected to pay $50,000 upfront! And
if that wasn’t enough, your high interest rates are bound to add tens of
thousands of dollars on the total mortgage you pay.
5. Your Job
While
it is safe to say that there is no specific link found between your credit score
and job performance, you should expect your employer to check potential
employees’ credit reports. There are some states like Connecticut and Indiana
who have restricted or banned the practice; however, there are still employers
who run a background check, including checking the credit history of employees,
especially for security clearance.
6. Your Personal Relationship
Believe
it or not, your credit score can put immense strain on your personal
relationships. Even though both of your credit profiles don’t merge, it still
affects your ability to get approved for loans and the rate of interest that
you receive.
For
instance, let’s say you have a high credit score, and your spouse has an
average score. When you apply for a mortgage loan, your lender will not only
look at your score, but will assess the overall credit risk of your household. So
you might end up paying a higher interest rate together, as compared to what
you would have paid alone.
How Do I Repair My Credit Myself?
It’s
quite risky to underestimate the impact of your credit score on your personal
and professional life. However, there are some steps that you can take, and strategies that can fix your creditscore. The first is to monitor
your credit report. QuickCreditRepair.com allows you to build your credit
using their fast and DIY guide!
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