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Why Should I Care About My Credit Score When I Do Not Want Any More Credit?

By Janet Lacey
Published: Sunday, November 29th, 2009

The credit score has become an extremely important number in recent times, and if you still do not really care how high or low it is, then right now is a good time to start doing so. This is because your credit score is an influential number that can impact a number of different areas in your life. If you think that your credit score matters only when you take a loan or a mortgage, then take a look at some other important places where your credit score may make or break the deal. 

Employment and Job Opportunities: A vast majority of employers nowadays look at a potential employee’s credit score before they consider hiring. This is because your credit score is also considered a score of how responsible you are, and a low credit score can often nudge you out of a good job that you wanted to bag. In fact, most employers will check through your complete credit report (of course with your permission), since it also lists employment history. 

Renting Space: whether you want to rent an apartment, a villa, a room or commercial space, it is likely that the landlord will check your credit report before trusting you with his property. This is common practice because if your prospective landlords get to know that you are late on payments, then they will be right in assuming that you will also be late in paying your rent, and deny you the use of their property. 

Auto Insurance: Insurance companies have started looking at credit scores as an indicator of risk. If you are not reliable and responsible in other areas of your life, it can be deduced that you are not going to be very responsible with your car or home as well. So if you have a low score, you will not only be given insurance at higher premiums, but some companies may outright deny insurance to you.

Cell Phone Connections: Cell phone companies nowadays offer you many lucrative schemes where you get a high end phone and a good scheme for a fraction of the actual cost, expecting that you will keep on paying for both over the period of an year or more. If you are not into prompt or regular payment of your other EMIs, then it is likely that you will default on your phone bills as well. Having a bad credit score may lead you to a prepaid plan or get you a lower talk time limit on your plan. At the same time, the phone models available for you under these schemes might not be the best or the costliest in the market.

Credit Card Charges: Your credit score not only plays a major role in determining whether you get a new credit card or not, but it may also affect the payments that you are making on your current ones. Many credit card companies have been known to increase interest rates and other charges on existing credit cards once the holder’s credit scores go down.

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