First Bank of the Lake: 5 Surprising Things Your Credit Score Impacts

In today's day and age, a strong credit rating is one of the most valuable financial assets an adult can have. Most people are aware that their credit reports can impact their ability to take out a loan or secure rental housing, but the truth is that credit scores impact far more than most people realize. First Bank of the Lake is here to open your eyes to some of the other factors that can be affected by your credit rating.

5 Unexpected Things Your Credit Score Impacts:

1. Cell Phones
Nowadays, most cell phone companies will pull and evaluate your credit score before granting you a service plan. If your score is extremely low, you may be required to provide a down payment or pay extra for your phone services so that the company's interests will be protected. In extreme circumstances, the cell phone company may even include a clause in the contract that allows them to review your credit report at any time.

2. Insurance
In the past, home and auto insurance rates used to be configured based on the number of claims you've had in the past and (for auto insurance) the number of tickets on your driving record. Today, however, insurance companies also take your credit score into account. Lower credit scores may cause you to be seen as a higher risk, which may in turn cause your insurance premiums to be higher. According to Credit.com, more than 90% of auto insurance companies now use credit data when determining their rates.

3. Utilities
Your credit score will play a huge role in your homeownership costs. Most people are well aware that mortgage lenders will issue higher interest rates to buyers with low credit scores, but did you know that utility companies may also use your credit information to issue their rates? If you have a very low score, your utility company may require that you add a co-signer to your account or supply an initial deposit before beginning their services.

4. Employers
In some situations, employers may elect to review your credit report during your job application process. They must obtain written permission before they are allowed to do so, and if they decide to take adverse action because of the information they obtained within the report, they must issue you a copy of the report they referenced. If they gave prior notice that they reserve the right to do so, employers may even be allowed to review the credit reports of their current employees.

5. Professional Licensing
Under the Fair Credit Reporting Act, government agencies that regulate certain professions are allowed to use the information within the credit reports for individuals applying for certain licenses. Doctors, attorneys, and other professions requiring a professional license may find it difficult to obtain the proper licensing if they have a poor credit history.

Remember Us As Your Trusted Financial Resource

Don't wait for a poor credit history to catch up with you - obtain a copy of your credit report and don't be afraid to dispute any negative claims that may represent inaccurate information.

Our bank at the Lake of the Ozarks is here to help you in any way we can. If you need a safe place to invest your funds or a convenient, easy location to set up a new checking account in Osage Beach (or anything in between), the team at First Bank of the Lake is here for you! Visit our website to learn more about the services we offer.

First Bank of the Lake - Striving For Excellence

Member FDIC. Equal Housing Lender.