You know that your credit score, or FICO score, is a number that is used by lenders to evaluate your creditworthiness as a borrower. Your score is based on information from your credit report. If you want to buy a car, apply for a mortgage, or get a credit card - the lender will try to assess the likelihood of your default on a loan and whether you will make timely payments if they extend credit to you.
What you might not realize is that plenty of other people are looking at your credit score besides creditors. There are plenty of other situations in which your credit score can play an important part in decisions that affect your life. Here are just a few of the people who may be taking a peek into your credit history.
Insurance Companies: More and more often, insurance companies are using credit scores to try to determine how likely people are able keep up with their insurance premium payments. If your credit score is not on par, the insurance companies may think you are too much of a liability.
Landlords: A credit check has become a routine part of a renter's background check in many places. If your score suggests that you have a history of late payments, your potential landlord may decide to rent that apartment to someone else.
Employers: Did you know that an employer may require a credit check as part of their conditions of employment? It is their legal right, and you may find that they decide to exercise it. If you want to work in a bank or any of the financial institutions, a credit check will almost certainly be part of your background check.
Utility Companies: Not just electric and gas companies, but even cell phone companies now run credit checks on their customers by using credit scores to determine whether customers need to pay deposits on their services this is to alleviate service disconnections.
Even if you are not in the market for a car or a home loan, it is still advisable to consider maintaining a high credit score. It could make a big difference when you apply for that job, or pay your insurance and utility bills.
