Ways That Credit Affects Our Everyday Lives and Why You Need to Know Your Credit Score

Do you know your credit score or what type of credit you have

? Many people don't know this important information. Having good credit can make things in life easier. It can be the difference in paying 10% or 20% for a car loan or whether you can rent that beautiful apartment you saw last week. Here are some things that your credit plays a crucial role.

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Interest Rates

It is common knowledge that you pay lower interest for things when you have a solid credit history. Two people can purchase the same exact car at the same price but their monthly payments can differ by $80. The only difference is the interest rate for the loan. This rate was dictated by their credit score. The same applies to getting a mortgage. The difference between 4% and 9% on a $200,000 mortgage can be drastic.

Renting Apartments

Many real estate companies and landlords will run a credit check before renting out an apartment. This is to protect themselves from default on a rent payment. Many landlords will not rent to those with a bad credit history because they need to ensure they will get their rent paid each month on time. Not all home owners run a credit check but you will be limited in your apartment search if you have blemished credit.

Cell Phones

You would think something as simple getting a cell phone shouldn't require good credit? WRONG! I remember I was in a cell phone store getting a new phone and another family was trying to do the same. They spent time picking out phones and decided the best plan for them. The salesperson ran their credit and told them they needed a $500 deposit per line! They didn't get a phone that day and wasted about 30 minutes of their time.

Ways That Credit Affects Our Everyday Lives and Why You Need to Know Your Credit Score

By: James Pritchard

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