When Does Your Credit Score Matter?

When Does Your Credit Score Matter?

Even If You Don't Borrow, Your Credit Score Still Matters

If you don't own or plan to own a home or a car, and you don't have a credit card, then you might be wondering if your credit score still matters. The answer is, yes. 

There are still a variety of situations in which having good credit will go a long way.

Getting a job: In some cases, a potential employer will want to look at your credit report  before hiring you. This is especially true for those working in finance, law enforcement or other managerial positions. Sometimes, employers request to obtain your permission before checking your information, but declining could raise questions. 

Renting an apartment: When renting an apartment or other type of housing, the landlord may ask to see your credit score. Sometimes they can look for information on your previous history of making payments and your current income to make sure you are not a financial risk.

Insurance policies: It’s becoming increasingly more common for insurance companies to check your credit scores to determine the premiums they will charge, or if they will cover you at all. 

Setting up utilities: While utility companies won't deny you service based on your credit score, they might require you to put down a security deposit before beginning service. This is to cover them in case you end up not making your payments.

The bottom line is that even if you don't plan on taking out any lines of credit, your credit score is still an important number for a variety of other life circumstances.

For more information on credit scores and reporting , visit the PrivacyGuard blog.