While credit card companies can no longer jack up rates on previous purchases if you’re late on some other bill, your credit card company can still use your credit history to raise your interest rate going forward. What you end up paying for your house, car, clothes, even the final cost of the groceries put on a credit card, can cost more than our neighbors! You might purchase your home for the same prices as your neighbors, but a lower credit rating can cost you thousands of dollars more in interest than others!
Whether you borrow money or not, you credit score affects many major areas of your life, such as:
- when applying for a job; a low credit rating may prevent you from being hired
- home and auto insurance may cost you more
- renting a place to live, landlords check to see what kind of risk you are, before approving you
Others are allowed to look at and use your score, including:
- anyone who has a court order or judgment against you....yes, even your ex-spouse, if they’re entitled to court-ordered spousal or child support.
- cell phone and utility companies
- current and potential creditors
- collection agencies
- government offices
