You already know that whenever you decide to buy a new car or new home, lenders use your credit score and credit report to determine whether you are “credit worthy” to receive a loan for that car or home. You also know that that those same credit reports and scores are used to determine your credit worthiness when you apply for a new credit card. What you may not know is that your credit also affects you in other often ways, some of which are profound.
Take insurance for example. Many insurance companies will pull a copy of your credit report to help them determine whether you are a “good risk” to insure your life, your home and/or your automobile. A lower score, delinquent accounts, charge offs or late pays on your credit reports may lead the insurance company to believe that you are not a good risk. This may translate into a higher premium or the inability to get life insurance, auto insurance or homeowner’s insurance.
Another example is employment. Potential employers may pull your credit report to help them determine whether you will be a responsible employee. A lower score, delinquent accounts, charge offs or late pays on your credit reports may show the potential employer that they will not be able to rely on you as a good employee. If you apply for a job with the Federal Government, they may use your credit reports to not only determine if you are a reliable employee but also to qualify you for a national security clearance. If you have a lower score, delinquent accounts, charge offs or late pays on your credit reports, the Government may conclude that you are more susceptible to an outside offer of espionage in exchange for payment.
Also, if you intend to be licensed in a trade or profession, your credit may affect your options. Licensing organization, such as the State Bar, Medical Association, Building Trades, etc., may use your credit report to determine whether you are honest in your dealings with clients, patients or consumers. If the licensing authority sees that you have bad credit, they may make the process of becoming licensed more difficult or they may deny your license application altogether. This is especially true if you have a lower score, delinquent accounts, charge offs, or late pays on your credit reports.
It is important to remember that credit is used for more than just determining whether you can get a car or house loan. Your credit and credit reports may determine where you work, live, your licensing status, your insurance. And depending on whether you have good credit or bad credit, your credit reports and scores may either open or close many other options and opportunities. If you have a lower score, delinquent accounts, charge offs or late pays on your credit reports, Lexington Law Firm can assist in determining how you may challenge these items on your credit reports. You deserve every opportunity in life, and Lexington is here to make certain that you get the credit to which you are entitled.