Money Making: 3 Unexpected Things That Your Credit Score Affects

credit scoreBy Liku Zelleke

A person’s credit scores say a lot about how “bankable” they are. It has become such a crucial gauge of whether or not they can be relied upon to settle their debts that everyone from landlords to car dealers turn to potential clients’ credit scores to make their decisions.

Once a credit history is ruined, it can take quite some time to fix it – if at all. So, apart from the obvious (inability to get loans and credit for consumables) what other effects does a bad credit score have on people’s lives?

Here are three major ones:

Employment

People looking to get a new job or even a promotion with a current employer should always try to keep a healthy credit history. Gone are the days when all it took to climb the professional ladder was a thick CV or an impressive track record.

In a 2012 survey by the Society for Human Resources Management, it was found that 47% of employers checked the credit history of the candidates they were seeking to hire. This step usually takes place immediately before a job offer is made. If things aren’t right in the credit department, then that job offer might never be extended as a healthy credit report is seen as a sign of responsibility and trustworthiness.

Owning a Home

The purchase of a home is considered to be an important step towards building long-term wealth. In order to take that step, a mortgage is required, which in turn raises the question of whether or not it can be supported by a good credit.

Credit history is analyzed along with income and employment histories, as part of a home loan application process. Usually, banks set their own credit standards but, on average, successful loans are given to people with scores of 620 and above. For excellent terms it should be in the 700′s.

Marriage Prospects

Yes, credit scores do matter in marriages. How? Well, in a 2014 study done by NerdWallet it was found that 53% of single adults were either “somewhat less likely” or “much less likely” to date someone who had bad credit scores.  According to the book, “Financial Lovemaking,” it makes perfect sense to avoid dating someone who has bad credit and poor money management skills.   The way a person manages their credit and financial situation may be indicative of their priorities or even their level of personal responsibility.  If they aren’t managing their financial health, are they managing their physical health?

Some people can get by with bad credit, but it makes you more vulnerable during financial emergencies or when you’re seeking to make major economic moves in your life.   Find out the credit score of anyone you think you may end up dating seriously or marrying.  You should know what you’re getting into.

Source: financialjuneteenth.com

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