Truman Advisors Share How Credit Impacts Other Areas of Your Daily Life

While some people may be under the impression that their credit score is something that is out of sight and out of mind, this isn’t true. Having a high or low credit score can significantly impact your daily life. Read on to learn five ways your credit score can affect you on a regular basis.

1. Your Credit Score Can Cost or Save You Money

Though you may not need to apply for a loan or any other form of financing right now, there’s a very real chance that you may need to in the future. When the time comes for you to buy a car or purchase a home, you need to have a solid history of good credit to get the best deal possible. All in all, your credit score helps to determine how much money you’ll be required to pay as a down payment for investments like a house or car, as well as what interest rates that you will be charged. 

Lenders and banks will use your credit score as a way to determine your ability to handle money. If you have a higher credit score, this proves to lenders that you are reliable and have the ability to repay a loan.

Lower scores are essentially red flags that indicate lending to you may be risky. When searching for financing options with a lower credit score, you may find that lenders charge higher interest rates or refuse to offer to finance at all. Similarly, individuals with no credit at all will also get less-than-ideal financing options as they have no form of credit history. 

2. Your Credit May Influence Your Career

Many employers are beginning to run credit checks when screening job applicants. Financial experts from Truman Advisors share that to these employers, this is another type of reference check as it tells them a candidate’s level of discipline, trustworthiness, and maturity. While your credit history may not be a factor for every employer, with high-stakes careers were a great deal of responsibility and trust is required, many employers will consider your credit report when deciding on a candidate. 

Though there is much debate as to the fairness of using credit history to choose employees, the fact of the matter is that this is how some employers operate. If you hope to get your dream job, improving your credit score will be a step in the right direction.

3. Your Credit Score Can Determine Where You Live

Renters searching for a new apartment will find that many landlords run a credit check during the lease application process. Experts from Truman Advisors note that these landlords are interested in learning your financial history in order to determine your ability to make regular payments and to see if you have a history of delinquencies or debts that may make it difficult for you to afford rent.

Most landlords favor high credit scores as this is an indication that their renters will pay on time. When the time comes for the landlord to choose between you and another potential renter, your credit score may be the defining factor in whether or not you get the apartment. 

4. Your Credit Will Affect Your Refinancing Abilities

If you already have a house and find that you want to refinance it in a few years, you’ll notice that your credit score will affect your ability to refinance your home. If a lower interest rate comes along, you may not be able to take advantage of this if your credit score is too low. Instead of being able to refinance your home, you’ll have to keep paying your mortgage at the same interest rate—overspending by tens of thousands of dollars as the years go on.

5. Your Score Can Impact Your Love Life

One of the more important factors most people consider when dating is their partner’s credit history. While this may seem trivial to some, if an individual is marriage-minded, they want to marry a partner that has a solid financial history. As most partners want a mate that is financially responsible, having a bad score may make finding the right partner that much more difficult.

This isn’t to say that a low credit score will be the end of a relationship, but it is something to consider as you work to build your credit. As two out of 10 men and three out of 10 women report they would never consider marrying someone with a poor credit score, this is something to consider when reviewing your own credit history. 

Credit can impact your life in a myriad of ways. Whether your credit is good or bad, it’s important to remember that this credit score isn’t stagnant. Do what you need to remain in good standing or to improve your credit. With good credit, you’ll find that you are able to achieve much more of your goals.