If you have a negative credit score, it can cause you more problems that you might expect.
Here are five unexpected ways your core impacts your life.
The Villages, Florida is the U.S. city with the best credit. Residents of this city have an average credit score of 806.
Your credit score is more than just a number. Having a low credit score can lead to unexpected financial stress. Your credit score impacts your life in ways you probably didn’t even know.
Keep reading for 5 unexpected ways having a negative credit score can impact your life.
1. Higher Bills
One of the ways your low credit score can affect your life is by increasing the charges on your monthly bills.
Having a low credit score can lead to increased bills because you will appear untrustworthy to companies.
These companies can include your cell phone company, insurers, and utility companies.
Having a low FICO score can lead to these companies charging you higher rates, fees, or low credit deposits.
2. Trouble Renting
If you are looking to rent a home or apartment, have may have trouble if you have a negative credit score.
Landlords almost always check the credit scores of future tenants and if your credit score doesn’t measure up, you might be out of luck.
The nicer of place you are looking for, the better the credit score you will need.
If you have a negative credit score, you probably can’t afford to buy a home.
However, if your financial troubles were in the past and your credit history is less than ideal, your mortgage rates will be too.
The lower your credit score, the higher your interest rate on your mortgage will be. Even if you have a poor history with credit, you may still qualify for a mortgage. Your credit score will affect your interest rate.
Check out CardGuru for more information on what is a good credit score.
4. Need a Loan?
Did you know that your credit score is the most important factor for lenders who determine your rates for an auto loan?
If you are looking to borrow money for vehicle purchase or take out a personal loan, your credit score will be the biggest factor in determining your interest rate.
If you have a low credit score, you may still qualify for a loan but the interest rates will be higher.
5. Your Career
Finally, having a low credit score could affect your ability to land a job.
Most states allow employers to request credit reports from their job candidates and most employers take advantage of this.
While employers are usually looking for red flags related to theft and to limit their liability for negligent hiring, your credit score says a lot about your trustworthiness as an employee handling their assets.
Improving a Negative Credit Score
Fortunately, a negative credit score is not permanent.
There are steps you can take to improve your credit score and build a solid credit history.
You can start improving your credit today to pave the way for a better financial future for yourself and your family.