We’ve talked a lot about how your credit score is calculated (and how Brigit’s Credit Builder can help build your credit), but not a lot of people know how that score actually impacts their day-to-day life. Here’s a list of everything that can be impacted by your credit score:
Buying a house
Your credit score will have a big impact on whether or not you qualify for a mortgage and buy a house. Most lenders are looking for a credit score above 500 to qualify, but if you want a lower interest rate, you’ll need a higher score.
Renting an apartment
In a competitive rental market, having a strong credit score is key. Many landlords and management companies will do a credit check as part of your application process and a higher score might help you stand out.
Getting better interest rates
Just like with a mortgage, a higher credit score often means a lower interest rate for credit cards, auto loans, and personal loans. Your income and debt history may also have an impact.
If you’re looking to refinance an existing loan, a better credit score will help you secure a lower interest rate.
Setting up utility accounts
Utility companies may run a credit check before opening your account. If you have a lower score, they may require a security deposit in order to set up your account.
Getting a new cell phone
If you’re not ready to buy a cell phone outright, your credit score will impact the plan your carrier puts together for you. A lower score might mean a higher down payment or your ability to lease a phone.