5+ Reasons You Need Good Credit – Some Of These May Surprise You

Submitted by Rachel on Thu, 09/21/2017 - 09:00
Surprising reasons you need good credit
Image Source: Flickr User Beta-J

Everyone wants good credit. The idea of having bad credit is embarrassing and a secret most people don’t want anyone else to know. Even if you don’t want to buy a house or car and don’t like the idea of having credit cards in your wallet, there are practical reasons to build up your credit score and keep it in good shape. Consider these surprising reasons you need good credit.

You Need Good Credit to Rent a Decent Apartment or House

Even if you plan to rent instead of buy, most landlords these days want to run a credit check. They see someone with a good credit score as someone that will take good care of their property. Whether it’s fair or not, a potential landlord might think less of you as a prospective tenant if your credit score isn’t in good shape. Also, if your credit score is low, they may believe you won’t pay your rent on time. Even if you pay your bills like clockwork, having a low score makes you seem riskier.

You Need Good Credit to Get a Better Deal on Insurance 

Insurance company studies have correlated lower credit scores to a higher incidence of claims. The numbers don’t lie – statistics are how insurance companies assess risk and stay profitable. Despite the law of averages, you might be a very safe driver and have an excellent driving record to prove it. But with a lower credit score, you’ll pay higher auto insurance rates. In fact, some top-tier companies won’t accept you at any price if you have a score below their accepted minimum threshold.

You Need Good Credit to Contract Cell Phone Services 

These days, the most competitive monthly cell services are often from off-brand providers like Cricket that let you pay month to month without a contract and allow you to use your existing phone. Premium providers, like AT&T and Verizon, though, run a credit check before allowing you to sign up and that’s because they offer “deals” where you can upgrade your phone for “free” every so often. In most cases, you wind up paying more for these contract services, but some people prefer this option.

You Need Good Credit to Work in Some Industries and Fields 

It used to be that employers only ran pre-employment credit checks if you applied for a job in finance, banking, handling cash, or in areas where you might have access to sensitive information. However, employers are increasingly asking for credit checks on jobs that have nothing to do with money or secure info. Potential employers may associate a clean credit report with integrity, potential job performance, and an employee that’s less likely to steal or cheat on the job.

You Need Good Credit to Avoid Excess Utility Charges 

Many utility companies now check your credit score prior to signing you up for service. So long as you don’t owe them an outstanding balance, they should allow you to open an account but might charge you a stiff deposit before they will set up service. You might be asked to deposit hundreds of dollars to establish your account and the utility may sit on that money indefinitely and only refund it after a length of on-time payments or hold it until you close out your account.

You Need Good Credit to Get and Keep Security Clearance 

If you’re in the military, planning to join, have a government job, or are seeking employment as a civilian contractor, you might have to obtain a security clearance to get and keep your job. If you already have a security clearance, periodic re-assessments are standard and usually require a review of your credit. Poor credit can cost you the opportunity to keep your clearance or block you from career advancements. This is yet another reason to safeguard your credit score.

One solution to deal with bad debt and get a clean slate on your credit score is to use bankruptcy. But after bankruptcy, it’s time to start rebuilding your credit score and make the most of your fresh start. To find out more about improving your credit score after bankruptcy, contact Credit Score Keys. Call 919-495-2365 today for a free consultation with our experts.