We all know that our credit score comes into play when buying a home or automobile or when applying for a loan but there are other times when your credit score matters.

Your credit score and credit history are a reflection on your ability to properly handle your finances. People with a good credit score are granted lines of credit more easily and receive more favorable terms. Maintaining a healthy score shows that you pay your bills on time and meet your financial obligations.

Here are times when your credit score may be taken into consideration.

When You Rent

Most leasing companies and landlords require a credit check as part of the rental application. A good credit score signals to them that you are likely to honor your financial commitments. A history of late or missed payments or accounts in poor standing could cause your rental application to be denied. A good credit score and positive credit history may get you a lower security deposit and more favorable lease terms.

Under the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA), lenders must give you an “adverse action notice” if your application is denied, or if you are offered less favorable terms. If you are denied it is a good idea to obtain a free copy of your credit reports, check them for accuracy and if you find any errors on your reports contact the credit bureaus to have the errors corrected.

Some leasing companies and landlords report your payment history to the major credit bureaus, if they do, making on time payments can help increase your credit score.

Credit checks by landlords and leasing companies may impact your credit score depending on the type of inquiry, hard inquiries impact your score soft inquiries do not.  

When You Apply for Utility & Phone Services

Utility companies and phone providers often check your credit score before supplying service. A less than favorable score can lead to a denial of service or may require a larger deposit.

When Applying for a Job

Potential employers often run a credit check when you fill out a job application, although they must get your written permission to do so. Employers may view prospective candidates who have a low credit score or poor payment history less favorably.

When Getting Insurance

Auto and homeowners insurance companies check your credit history to generate a credit-based insurance score, they often view customers who are financially responsible as less of a risk which can mean lower rates and more favorable terms.

Maintaining a good credit score is important in many areas of life. You are entitled to a free copy of your credit reports with the three major credit bureaus, Equifax, Transunion and Experian. To obtain your free copy go to https://www.annualcreditreport.com/index.action

Check your reports for accuracy and if any discrepancies are found contact the credit bureaus to file a dispute. False information on your reports can lower your score and cause you to be denied services.