Who Looks at Your Credit Score?

You know your credit score is important, but just how important is it? Find out who’s looking at your credit score, and how it might be affecting you.

Credit Scores Far from Secret

Think your credit score is private information that only a few are privy to? That may have been the case in the past, but not anymore. Nowadays more and more people want a peek at your credit—and we’re not just talking about creditors, either. Here’s a list of some of the people who may be taking a look into your credit history:

Insurance Companies

The insurance industry has found that it can use a person’s credit score to determine how likely he’ll be to keep up with insurance premiums. This means that if your credit score isn’t up to par you’ll probably find yourself paying more for your insurance—whether it’s auto, homeowners, or renters.

Employers

If you want to work in a bank or another financial institution you’ll probably have to undergo a credit check—just goes with the territory—but did you know that any employer can require a credit check as a condition of employment? It’s true, and more and more employers are exercising this right. Why? Because your credit history shows how responsible you’ve been with your money—and by extension, how responsible you can be expected to be on the job.

Landlords

Need to rent some new digs? Then, be prepared to agree to yet another credit check. Your credit score can help a landlord to decide if you’re someone who’s likely to pay on time or even at all. If you’ve got late credit card payments or open collections in your past, you may not get the lease that you’re after—or you may get the lease, but find yourself stuck with a larger deposit than you expected.

Utility Companies

Need to establish service with the local utility company? Yep, you guessed it—another credit check. Many utility providers now use a credit check to determine how much you’ll need to pay as a deposit. If your credit history is spotty or non-existent you’ll probably be expected to pay more than someone with a clean credit report.

Your Credit Score is Still Yours

It’s true that more and more businesses are requiring credit checks, but that doesn’t mean that you can’t or shouldn’t protect your credit report.

By law employers, potential employers and landlords must get your written consent before obtaining a report, so think carefully before granting someone access to your records.

Undo Damage to Your Credit Score

Is a low credit score hurting your employment, housing and other opportunities? Then, do something about it. With a bit of work you can whip your credit score into shape, and look as good on paper as you do in person.

~Erin Huffstetler

Erin Huffstetler, a freelance writer specializing in frugal living tips and tricks. Her work has been featured in numerous print and electronic publications including, Family Circle, Parents, Pregnancy, Guideposts for Kids, Sweet 16 and Girls' Life.