Todd Christensen Profile Picture
Staff Writer at Debt Reduction Services

It’s a fair question: “If I’m not planning to make a purchase on credit anytime soon, why should I care about my credit?” While it’s true that the most commonly known use of credit has to do with getting approved for a loan, there are other situations when credit can have a positive or negative impact (direct or indirect) on our lives.

1. Many employers check job applicants’ credit prior to making a hiring decision. This may seem unfair and irrelevant to many, but employers reason that since a person’s credit is indicative of their efforts to repay financial obligations, employers may use that information as an additional insight into the job applicant’s overall qualifications for employment. When the potential employer is in the finance, law enforcement or government sector, credit checks are even more common.

2. Many landlords, especially property management companies, will check potential renters’ credit scores. Since renting out their property involves the risk that the renter will not pay their obligations on time, a credit check shows which applicants have a history of on-time payments and which do not.

3. Many auto insurance companies base a portion of their monthly premiums on the vehicle owner’s credit. While morally disputable for some, there is a clear correlation between an individual’s credit score the average size of claims that those with similar credit scores submit.

4. A utilities account cannot be denied based upon one’s credit, but the company can certainly jack up the security deposit.
So, even if you’re not considering making a major purchase any time soon on credit, it is still a good idea to keep your credit report accurate and as positive as possible. See our “Financial Tips” article below to know what is on your report and how to dispute errors.

If you have any suggestions or stories on how you’ve experienced relief from credit cards and other debt feel free to share in the comment section below. Tips, tricks and other suggestions are always welcome!

1-877-OUT-DEBT (688-3328)

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