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HOW YOUR CREDIT IS IMPACTED
Your credit has a direct impact on
many things in your life. Below is information detailing
how and when credit is used and what the impact is when
your credit file is accessed for specific reasons.
Apartments
Your credit will likely be pulled by a rental
agency or landlord when determining whether or not to
rent you an apartment. They are going to be looking for
major negative marks that would indicate that you are
not a responsible individual. The information you put
down as your employers address and phone number will
also be checked. It is possible to be denied an
apartment or be charged higher rent as a result of
negative information on your credit report. Having to
leave a larger deposit on have someone co-sign a lease
for you is also a probability. Please note that
inquiries as a result of rental applications will not
affect your credit score.
Auto loans
The
auto loan rates you receive when applying for
financing will be directly influenced by your credit
score. It is typical for auto lenders to not review your
entire credit history. Instead they will rely on some
basic application information and your credit score.
Higher credit scores will result in the best deals
(interest rates as low as 0%). If you have bad credit,
don't worry! Star Loan Services specializes in proving
car loans for people with bad credit, including
bankruptcies. Typical interest rates for bad credit
financing are going to be higher.
Cell phones
Your credit score will be checked by the cell phone
company before they choose to grant you a plan. It is
very common for people with poor credit to be asked to
leave a larger downpayment or pay extra for the service
contract. You can get a cell phone without having your
credit checked. Please note that cell phone inquiries
will show on your credit file and adversely affect your
credit score.
Checking accounts
Your credit report will not be reviews by the bank when
looking to open a checking or credit account. Your ChexSystems
report will be reviewed by the bank. ChexSystems
included records of all negative banking issues like
bounced checks.
Child support enforcement
agencies
Your credit history can be checked by a child support enforcement
agencies. This type of inquire will not appear on
your credit report and will have no impact on your
score, non-payments will be reported by these agencies
to the credit bureaus. Non-payments will damage your
credit score.
Credit cards
Not only will your credit score be used to determine
credit card approval, the interest rates and terms you
receive will be impacted by what your score is. You will
need to have a good credit history in order to receive a
credit cards with low interest rates.
Credit cards with
rewards typically will demand the highest credit score.
If you have poor credit, there are many
bad credit card
offers that are designed to help you
rebuild credit.
Applying for multiple credit cards will lower your
credit score.
Employers
Any potential employers must have your written
permission before they can pull your credit profile.
Employers will obviously be looking for any type of
negative marks on your credit report. If the employer
decides not to hire you as a result of information present
on your credit report, they must let you know and
provide you with a copy of your credit report. Existing
employees can also have their credit checked by their
bosses as long as permission has been granted. Your
credit score is not affected when an employer checks it.
Government assistance and
licensing
If you are applying for government assistance or
specific licenses, a thorough credit check will be
performed. However, that your permission is not needed
by any government
agency when accessing limited information from your
credit files, i.e. your name, current and former
addresses, current and former employers.
Insurance
Rate and terms for home and
auto insurance and determine
by your credit rating. Nowadays, over 90% of auto
insurance companies will use your credit information
when determining approvals and rates. The better your
credit score, the better the rates you will receive.
Insurance credit inquiries will not affect your credit
score.
Mortgages
Mortgage loans are the largest type of loans. Therefore,
the review process is much more detailed. When applying
for any type of mortgage, lenders will review all three
of your credit reports and scores. Encompassing a credit
score of 700 or above will allow you to receive
favorable rates. Mortgage applications do appear on your
credit score and can result in a lower score.
Student Loans
Your credit is not pulled when you apply for federal student loans.
Also, when you
consolidate federal loans, your credit
will not be checked by the new lenders. Your credit is
only checked some of the time when applying for private
student loans.
Utility Accounts
It is very common for your credit to be checked when
opening new cable, phone, gas, electric or other types
of utilities. If you have poor credit, you may need to
have someone co-sign your account for you. Inquiries from utility
applications do not harm your credit score. |
