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From buying boats to taking classes, we take out loans for a wide variety of purposes. Whether you have a credit card, car loan, student loan, or something else, most of us borrow money. When companies determine if you qualify for a loan, they look at many factors, including your credit score. While we know that lending companies check this score, did you know other people can check this score as well? In this post, we’ll talk about 3 surprising ways your credit score is being used, so you can better understand how your credit score can affect different areas of your life.
While you might think your credit score is confidential information, this number can affect the chances of you landing a job. Employers can now conduct an employment screening where they can see a credit report for an employee or potential employee. However, it’s important to note that this report is quite different than the ones lenders use. In addition, you have to give written permission for an employer to conduct this type of screening.
Before starting service with a utility company, they have the right to check your credit score to ensure you’ll be a responsible customer. In the event that you have poor credit or no credit at all, the utility company might require a deposit or a letter from someone else stating that they will pay the bill if you can’t. Utility companies don’t report your payment history the credit bureaus, but if they have to send a charge to a collection agency, that will typically show up and affect your credit score.
When applying to live in a house, apartment, or any other type of living situation, landlords will typically conduct a credit check to determine your financial status before signing the lease. Landlords want to make sure they’re dealing with someone who will pay rent on time and someone who will be a responsible tenant. Landlords or property managers can either see a full credit report or use a tenant screening service to see your rental history and the debt you owe.
Whether you have great credit or poor credit, its vital to understand who all sees your credit score. By knowing this information, it can make you more aware of how your credit score can affect many aspects of your life—not only your chances of getting a loan or credit card. Know your score, understand who can see it, and work toward a better financial future.
If you are dissatisfied with your credit score, there are steps you can take to raise it. It’s as easy as selecting one of the best credit repair companies and working with them to eliminate errors, raise your score and make your payments on time.