Finance Blog Post
Common Things You Never Knew You Needed a Good Credit Score For
Whether you’re happy about it or not, the truth is that when it comes to progressing as an adult in life, there are many milestones that rely on one number: your credit score. Being aware of the significance and importance of your credit score from earlier on in life can help you avoid making the mistakes that will become an inconvenience in the future. Here are some common things in life that you never knew you need a credit score – and possibly a good one – for.
A Phone Contract: Credit Score for Chit Chat
As is turns out, the simple luxury that seems like a commodity in modern times requires a credit score, too. The largest mobile providers in the United States, such as AT&T, Verizon, and Sprint, run credit checks on new customers requested postpaid service on a mobile line. Though a less than average credit score won’t completely negate from your ability to get a mobile phone, it may become an inconvenience as the phone provider is more likely to require a deposit, sometimes up to $500 for a mobile phone. Other options for rebuilding poor credit is opting for a prepaid phone, thereby leaving the contract route.
Getting Hired: The Employee Credit Check
Though this may be considered less common in certain parts of the United States, the pre-hire employee credit check is something that is surely alive. Next time you are on the hunt for a new job, therefore, don’t be surprised if your potential employer requests a credit check approval. Don’t worry, the credit reporting bureaus in the United States must notify you and receive your approval prior to running a credit check for employment reasons. As an integral part of the job application process for some employers, particular red flags on your credit history – which is quickly reflected in your credit score – include liens, bankruptcy, late payment history, and 100% credit utilization.
Home Sweet Home: Credit Score for Renting Property
Though this phenomenon is much less common in other parts of the world, where a simple meet-and-greet and standard contract suffice, renting property in the United States is much more official. This is another area of life where having a good credit score and credit history comes to your advantage, since the majority of landlords across the United States are now running credit checks on potential renters. Though the approval is at the landlord’s discretion, a credit score below 620 may commonly leave renters leveraging further options in order to get a approved for a rental, like providing higher cash deposits, bringing in a co-signor, or setting up automatic payments.
When it comes to talking and staying connected, working, and having a home, you may be surprised that these necessities in today’s modern world revolve so much around that three digit number. Luckily having been made aware of these critical components of life, you’ll be on the road to building back up a poor credit score or protecting a good one from future harm. Keep your payments on time, keep your credit utilization low, and keep your options open.