It is becoming more and more difficult for people to live today without good credit – even if they don’t use credit cards. The reason is that our credit scores being used for everything from getting an apartment to a job. As such, it has become more important than ever to have good credit and this article will go over how an improved credit score impacts your life.
- Getting That New Cell Phone
Just like good credit scores, it is getting harder to live without a smartphone. This is not to say that you need to run out and get the newest version of the iPhone every time Apple releases an update but if your phone can’t connect to the internet, then you could be on the outside looking in.
One thing about these gadgets is that they are not cheap and while most telephone companies offer a payment plan, they only do this when the subscriber has good credit. As such, you want to make sure your credit is in good shape or you will have to pay for that new phone in cash and this could be $600 or more.
Another thing to know about cellphones is that you will need to have subscribe to a plan and this again means that you need good credit. If not, then you will be forced to take on a pre-paid plan.
- Finding a Place to Live
Having good credit when you apply for a home mortgage is self-explanatory. But what you might not be aware of is the fact that many landlords will look at a tenant’s credit score before they decide who they are going to offer leases to.
This means that you need to have good credit to get into most apartment buildings. If not, then you might end up in a less-desired location with a higher rent and this could end up costing much more over the long run.
You might think this is discriminatory, and you might be correct, but most landlords want to make money and one of the best ways to do this is to rent to people who will pay their bills on time. In addition, good credit scores are often take as a sign of responsibility and this usually translates to tenants who will help to take care of a property when they live there.
Beyond which building you can live in and how much you will pay in rent, some landlords will use credit scores to determine the deposit required from tenants – with those with lower credit scores generally being required to pay more.
If your credit is not great and you really want to get an apartment, then one way around this is to have a co-signer for your lease. This is someone with good credit who will let you use them as a form of ‘reference’. Another option is to opt for a longer-term lease.
- Keeping the Lights On
That’s right, having good credit is also important if you want to hook up certain utilities in your new apartment. This includes getting electricity, cable, or even phone service without having to pay a deposit.
Just like landlords, these companies will check the credit scores of new customers before approving them for service. By the way, they also report your payment history to credit reporting companies and this means that you need to keep this in mind when making payments.
- Getting Covered
Be it car insurance, life insurance, or health insurance, these companies are now checking the credit score. This means that getting the coverage you need involves having a good rating.
Keep this in mind or it could come back to get to you later. If you are not sure what the impact will be, then go online and check Mercury Insurance reviews, or some other company, to see what policyholders with varying credit scores say about the impact of having less than perfect credit.
- Getting a Job
Now, this is definitely unfair, at least for most jobs, but the use of credit scores as a job screening tool has becoming increasingly commonplace in recent years. Once again, these scores are seen as a measure of responsibility, yet they fail to consider the impact of when someone has fallen on hard times.
While the simple answer would be to improve your credit score, this is a long-term process and might not help someone during a job search. As such, you might want to consider preparing a short letter to a future employer which will explain the reasons why your credit is impaired and what steps you are taking to improve it.
As you can see, we are increasingly living in a world that relies on having a good credit score for just about everything you do. Improving your score can not only help you get a better job or apartment but it can also help you to save money. So, if your credit score is less than perfect, then map out a plan to make small improvements over time as this can help to change your life.