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6 Silent Ways A “Poor” Credit Score Could Be Costing You Money

The Money Manual
August 20, 2018
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Common sense dictates that you go in for regular physical check ups to make sure your body is in tip-top shape. The same logic applies to your credit score: regular check ups allow you to keep it in a healthy range.

Your credit score needs a doctor too – and the easiest way to keeps your credit score in healthy is with Credit Sesame. Besides allowing you to check your credit score for free at any point, it will work in the background monitoring it for you, so you don’t have to do any work.

Exactly why is keeping your credit score in a healthy range so important? Here are six things you must know your credit score before even attempting.

1. Renting a house or apartment

Landlords aren’t fairy godmothers, willy-nilly granting you a lease for an apartment. If you have a good credit score, landlords will be more willing to look at your housing application in a positive light. Sure, earning a good salary is important, but your history of paying your bills on time is even more important. Make sure to check your credit score for free to ensure you would even be eligible to rent a home. Have a bad score? You might be disqualified from even renting if your score isn’t high enough.

2. Applying for a credit card

Having a good credit score ensures certain perks as far as your credit cards are concerned.  The better your credit score is, the lower your interest rate will be. Your credit card issuer might even throw in extra perks like more cash back or a different set of rewards. You can check your credit score for free here if you’re thinking about applying for a card. Have a bad credit score? You can forget about even applying for a new card.

3. Getting a loan

Lenders are more likely to accept your application for a loan if they like your credit score: the higher the credit score you have, the more a lender will trust that you will pay your installments in full and on time.  Not to mention, higher credit scores mean lower interest rates on loans. The difference between a 3.5% and 4% interest rate may not seem like a lot, until you notice you’re paying an extra $1,000 that could have been going towards your kids’ college fund.

4. Signing up with a utility company for heat or electricity

Moving is hard enough without utility companies making you pay a security deposit of $100 to $200 because of a bad credit score. People who are smart always check their credit score before making the jump to a new home (and a new utility company). That’s because the better your credit score is, the more likely the utili company will dismiss this pricey deposit (remembering to turn your lights off when you leave your apartment is a whole other matter).

5. Changing your car insurance

You can’t tell how well a person drives based on their credit score, but insurance companies are more likely to offer lower rates for individuals with higher credit scores. You may drive as well as a NASCAR, but if your credit score tanks the insurance company is going to assume you drive as well as a ninety-year-old grandmother with cataracts and issue you not such a great rate.

6. Getting a job

These days, it’s not just your resume that companies look at when they are considering hiring you. Although employers have to ask your permission first, many will use your credit score as a way to judge if you are a trustworthy and responsible person. Knowing and fixing your credit score before applying for a job can give you that extra leg up. This information is especially significant for individuals applying for jobs that involve handling money or financial information.

Want to find out your credit score before it’s too late?

  • Sign-up for Credit Sesame and find out your credit score immediately. It only takes 30 seconds!
  • Credit Sesame will start monitoring your credit score for you–not more surprises!
  • It is 100% free to join so you have nothing to lose!

Sign-up for Credit Sesame today and get ahead of any potential problems by knowing your score and history!

Feature Image: Pixabay

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