Most people already know that having a high credit score offers the benefit of lower interest rates on just about any type of loan, including mortgages and credit cards. But there are several ways that having a high credit score can help you in everyday life!
IT’S EASIER TO RENT A HOME
A credit check is a standard part of the rental process. Most property management companies do it, and even if you're renting a place directly from the homeowner, there's a good chance they'll want to check your credit.
Some landlords deny applicants who don't meet their minimum credit score requirements, especially if they have other prospective renters to choose from. Or, they may require a larger security deposit. With a high credit score, you'll have a much easier time getting approved for a rental without paying extra upfront.
YOU COULD GET CHEAPER INSURANCE
In most states, insurance companies can use credit scores to help set premiums. There are currently only three states that ban the use of credit scores in setting insurance rates: California, Hawaii, and Massachusetts.
Everywhere else, your credit history is fair game for insurance companies. It can make a huge difference, too. Research on the average car insurance rates shows that drivers with excellent credit paid an average of $1,846 per year for car insurance. Drivers with poor credit paid over twice as much, $3,955, on average.
YOU DON’T NEED TO PAY DEPOSITS FOR UTILITIES
Your credit could even affect something as simple as getting the power and water switched on at a new place. Utilities companies often require that people with low credit scores pay a deposit to receive service. People with high credit scores normally don't need to do this.
So, in addition to possibly paying a much larger security deposit for an apartment, you might also need to pay more deposits to the utility providers. As you can see, move-in costs could be far more expensive if your credit rating is on the low side.
IT CAN HELP WITH PRE-EMPLOYMENT SCREENINGS
About 25% of employers conduct credit checks while hiring for some positions, according to a nationwide survey by the Professional Background Screening Association and HR.com. While employers don't see your credit score, they get a modified version of your credit report that includes your accounts, payment history, and credit usage.
For certain types of jobs, your credit history could make or break your application. If you're applying for a position that will have access to money, sensitive data, or that requires a security clearance, then the employer will most likely check your credit.
IT CAN HELP YOU GET A SMARTPHONE AND WIRELESS SERVICE
Most major wireless carriers offer financing plans for popular smartphones. If, for example, you want to upgrade to the most recent iPhone, many carriers will let you pay off the price of the phone in monthly installments. They'll also run a credit check first to see if you have a track record of paying your bills on time.
A credit check is also usually required to get postpaid wireless service. You can, however, avoid this by opting for a prepaid cell phone plan.