Credit (an agreement to repay a loan over time) is becoming ever more pervasive in our society. What used to be the exclusive privilege of the wealthy has only in the past 50 to 100 years become available to the masses.
From buying a new home or car to purchasing a burger, shake and fries, credit – whether in the form of a loan and a credit card – has become a familiar sight just about everywhere anything of value exchanges hands.
As credit’s popularity increases, so too do the purposes for which businesses use an individual’s personal credit history as a tool in making business choices. Decisions which are based in part upon how an individual has used and managed their credit accounts include the following:
- Mortgage Lenders: Credit history will play a deciding factor in whether the you qualify for a loan, what the terms will be, and whether the you’ll qualify for advantageous programs.
- Automobile Loan Lenders: Your credit history will play a deciding factor in whether you qualifies for a loan as well as what the terms will be.
- Landlords: Credit history also may play a deciding role as to whether a landlord approves your request for occupancy.
- Employers: Now, more than ever, employers are using credit history as part of a pre-employment screening process, even if the applicant has an impeccable resume and flawless interviews, before making a final hiring decision.
- Insurance: Your credit history may play a large roll in determining the monthly premium that car and or home owners insurance provides you. A person with very poor credit may, in some cases, be denied insurance altogether.
- Utilities and Cell Phones: Many utility, cell phone and internet providers routinely check an individuals credit history prior to activating their customers. In some cases services will not be provided, or the carrier may require a “security deposit” up front.
If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.