Many people neglect to stay on top of their credit score and suffer decreases in their score that they may not be aware of. There are many actions that can cause a drop in your credit score and each of them affect your score to a differing degree. It is important for you to keep your credit score as high as possible so that your credit score will not have a negative effect on your life. Here are some of the consequences of having a bad credit score.
Your Insurance Quotes Will Be Higher
The amount that you are quoted for any type of insurance you may be seeking will be higher if you have a bad credit score. A credit score is an indicator of risk and a low score indicates that the person is a high risk. Since most types of insurance involves some type of risk, it makes sense that insurance companies will use your credit score to determine what type of risk you are. If you know you will be seeking insurance in the near future, try to get your credit score as high as possible before applying to get the best rate.
Your Security Deposits Will Be Higher
Landlords and rental companies often use a person’s credit score to determine the amount of the security deposit they will be charged. Individuals that have a good or excellent credit score will generally pay less than those that have demonstrated sketchy financial decisions in the past. People that have a bad credit score will be pleased to know that the security deposit is usually returned at the end of the rental period if everything is returned in good condition according to the terms of the rental contract.
You May Be Turned Down For A Rental
Being able to rent an affordable apartment or home is very important, but if you have a bad credit score, you may be turned down by the landlord or rental company. Landlords only want to rent to people that will be sure to pay their rent on time, and a low credit score indicates that you may not be timely with all of your payments. Many of the best rental locations will ask for permission to pull your credit score before accepting your application and the information that they find will dictate whether you will be able to live at that location.