Even if you are not planning a major purchase, such as a house or a car, in the near future, your credit score is still important. Many businesses and service providers are relying more and more on good credit scores before offering goods and services. You may find yourself in need, without anywhere to turn.
You must have good credit to find a place to live. You may not be interested in buying a home, but landlords will check credit scores, too. Your landlord will want to be sure that you have a history of paying your bills on time, and a bad credit report will tell them everything they need to know. Without good credit, you may be denied the house or apartment that you wish to lease.
If you are applying for a new job, it may surprise you to know that your potential employer will want to check your credit. This is especially true in positions with fiscal responsibility, because your employers will want to know that you can demonstrate financial responsibility. In addition, the employer may want to know if your level of debt is too high for the salary that your intended position offers.
You may also find that you are without certain utilities if you have poor credit. Utilities companies believe that each month of utilities that they provide could be considered a loan, which you pay at the end of each month of service. If you do not demonstrate good payment practices, utilities companies may be less likely to offer their services. You may be able to come to an agreement that will allow you to use the water, gas, phone, or cable services, but you will probably have to offer a sizeable deposit before you can use the services.
These are all excellent reasons for cleaning up and maintaining your credit score. You will find that the fastest way to improve your credit score is to make your bill payments on time, every time. When you know that there will be a problem with your monthly payment, it is in your best interest to contact your creditors and make them aware of the problem. A little bit of communication can go a long way to protect your credit standings. By taking responsibility for your finances, you can begin to show your creditors that you are worth the risk that they will take.