[Y]ou pay everything with cash. Your motto is “If I can’t pay cash, I can’t afford it.” That means no credit ever. You may assume that you don’t need to worry about your credit score if you don’t plan to use credit to buy anything. Unfortunately, credit isn’t just about loans and credit cards. A credit rating impacts everyone at some point in their lives.
1. You Need Credit to Get Car Insurance
Even if you pay cash for your car, you may need credit to get car insurance that is affordable. Many states allow insurance companies to review an applicant’s credit history to set the rates for them. A person with no credit history or a bad one may pay more for car insurance. In some cases, you may even be turned down.
2. You Need a Place to Live
Many landlords now ask to do a credit check before they approve an application. They want to know that a person won’t leave them with a big rental bill. You may also have a credit check to get utilities in your name. Some utility companies charge a deposit for someone with poor credit or none. This can amount to several hundred dollars, depending on what you need.
3. You Need a Job
Some employers check credit history when you apply for a job. While a lack of credit history may not keep you from getting a job, poor credit might. This becomes a bigger deal if you will be handling money or if you have access to financial accounts.
There are many other reasons you may need credit such as renting a car or other traveling expenses. Credit is used as a way to measure a person’s level of responsibility. A lack of credit can cause you almost as much harm or delay as having bad credit.
It’s also important to understand that having credit doesn’t mean you pay for things on credit. It can simply mean you have that option and that you have proven to be responsible when it comes to money.
[I]f you have a goal to improve your credit score for the new year, you need to set up steps to help you achieve this goal. For many, they read all kinds of information about how to get a good credit score, and it can be overwhelming. Sometimes, it can sound so easy but not […]
[T]here are three major credit reporting agencies: Experian, Equifax and TransUnion. All of them provide a credit report which lists your personal information and credit accounts. You can get one report for free each year or purchase extra reports through the agency sites. Many people just get one credit report, but you really should get […]
[A]s you get credit cards, you will notice they give you a credit limit. This is the maximum amount you can spend on the card without paying some of it off first. Credit card companies often increase your credit limit as you prove responsible handling the amount you have. You may wonder if more credit […]
[I]f you have bad credit, it can be difficult to qualify for a car loan. However, it’s not impossible. Before you go out and apply for money to purchase a vehicle, there are some things you should know. Check Your Credit Before you fill out any applications for car loans, you need to take a […]
[M]any people hear that they have bad credit, which means they haven’t always been responsible with their credit accounts. However, it is another situation entirely when a person is told they have no credit. You may wonder how that’s possible and what it really means for your future. No Credit Doesn’t Mean Never Any Credit […]
[T]ransUnion is one of the three credit bureaus which stores information about consumers and their credit history. It provides this information to creditors and to consumers. TransUnion was founded in 1968, and it now has more than 200 offices through the US and the world. How TransUnion is Different TransUnion is similar to the other […]
[E]quifax is one of the three major credit reporting agencies which provides information used on your credit report. It has a credit score which will impact your ability to get approved for new credit. All of these agencies aren’t the same, so here is some information you should know about Equifax. Equifax is headquartered out […]