WHO CHECKS YOUR CREDIT AND WHY

You probably know that anyone you want to borrow money from is going to check your credit- this includes mortgage lenders, credit card issuers and car dealerships. Creditors use your credit score to determine whether to lend you money and if so, what interest rate you will get. The higher your credit score, the lower the interest rate you will qualify for and the less you will pay to borrow that money. It follows, of course, that the lower your credit score, the more interest you will pay, if you can even get a loan or a credit card at all.

But did you know that home insurers, landlords, cell phone companies and electric utilities may also use your credit score? It can be used to determine whether you can get insurance and at what cost, whether to rent you living space and at what price and whether to require a deposit when you establish cell phone or utility service.