By Constance Brinkley-Badgett<\/p>\n\n\n\n
Your credit scores may seem abstract \u2014 just a bunch of numbers loosely associated with how well you pay your bills. But these numbers have real-world implications when it comes to borrowing money, qualifying for housing and sometimes getting a job.<\/p>\n\n\n\n
Your credit history, and thus your credit scores, also can affect many aspects of your life that seemingly have nothing to do with credit. So what, exactly, does your credit score affect<\/a>? Lots of things. Here are some scenarios where your credit scores can help or hinder your ability to do business.<\/p>\n\n\n\n Getting a Cell Phone or Cable Service<\/strong><\/p>\n\n\n\n Phone and cable companies may review a version of your credit reports before entering a service plan agreement with you. If you have credit issues, such as late payments, defaults or other blemishes, these companies may ask you to pay a deposit before providing you with service.<\/p>\n\n\n\n Opening a Checking Account<\/strong><\/p>\n\n\n\n Banks don\u2019t check your credit when you open checking or savings account, and your checking and savings account activity is not reported to the credit bureaus. Most banks will, however, review your ChexSystems report before opening your new account. This report is not based on your credit file, but instead includes records of bounced checks or other banking negatives.<\/p>\n\n\n\n Those bounced checks can hurt your credit<\/a>, and it\u2019s something to keep in mind as you manage your accounts. That\u2019s because the person or company to whom you wrote the check could end up hiring a debt collector to get the money from you, and that collection account will be reported to the credit bureaus.<\/p>\n\n\n\n Renting a New Apartment<\/strong><\/p>\n\n\n\n If you\u2019re looking for a new apartment, your credit is most likely going to be a factor in whether you get it. That\u2019s because landlords, property managers and rental agencies usually review the credit reports <\/a>of potential renters. They\u2019re often looking for things like missed payments or other negative information, but in some instances, even your overall credit score can have an impact. If you have bad credit, you may be required to pay a larger deposit or get a cosigner. If it\u2019s bad enough, they may even reject your application altogether.<\/p>\n\n\n\n Buying a New Car<\/strong><\/p>\n\n\n\n If you have excellent credit, you\u2019re likely going to qualify for the best available loan terms, sometimes even a 0% APR if it\u2019s being offered. On the other end of the credit score spectrum, people with major credit issues will typically pay the highest legal rates<\/a> if they qualify for the loan at all. The somewhat good news with automobile purchases is that most lenders are willing to work with you, even if your credit is terrible. But be careful that you don\u2019t accept terms that you can\u2019t afford just because you need or want that new ride. Because the loan is secured, some auto loan lenders are looser with their lending practices. That means if you don\u2019t make your payments, they can recoup their losses by repossessing your vehicle. So be sure to shop around for the best auto loan rates<\/a> you can find, and make sure you consider insurance premiums in your overall costs when you accept the loan terms.<\/p>\n\n\n\n Getting Insurance<\/strong><\/p>\n\n\n\n Auto and home insurers frequently use your credit information and other personal information to determine how big a risk you\u2019ll be to insure. The bigger the risk, the bigger the premiums you\u2019ll end up paying.<\/p>\n\n\n\n Getting Credit Cards<\/strong><\/p>\n\n\n\n Getting a credit card with bad credit can be challenging, though there are credit cards made specifically for people who need to improve their credit. These cards typically do not come with any of the perks that cards for people with good or even excellent credit qualify for. In fact, some even require a deposit. If you already have credit cards, that doesn\u2019t mean your credit scores don\u2019t still have an effect on those accounts. Credit card companies frequently review credit scores for existing cardholders and can adjust your rates if your credit has taken a recent hit.<\/p>\n\n\n\n Getting a Mortgage<\/strong><\/p>\n\n\n\n Like credit cards and auto loans, there are mortgage products available for people with varying credit scores, so it\u2019s possible to get a mortgage even if you have bad credit. Keep in mind, though, the best terms and rates go to those with the best credit scores, so you\u2019ll want to do what you can to improve your scores before applying for your mortgage loan. Regardless of where your credit stands, you\u2019ll also want to shop for the best rates available for your credit situation.<\/p>\n\n\n\n Getting a Job<\/strong><\/p>\n\n\n\n Some companies check a version of your credit reports as part of the application process to see how well you handle your personal financial responsibilities. This can be especially true for jobs that require you be bonded or insured.<\/p>\n\n\n\n