Your insurance premium went up? Better check what’s on your report.

We've been telling our clients for years, your credit score and bad credit may not just affect whether you get that loan, or what interest rate you're going to be charged, it is increasingly being used in non-lending capacities. 

The two biggies that are often discussed are insurance and employment.  Insurance companies have made the deicision that your credit score has a correlation to how big of a risk you are.  Therefore, the lower your score the higher your premium.  Worst of all, they don't even know why there is this correlation, they just believe it and you end up paying for it whether it's fair or not.

Employers may also evaluate your score as critically as they may evaluate your references, and guess what, bad credit equals no job.  Seems like a catch-22 to us, how are we supposed to work on improving our credit and raising our credit score if we can't get a job.

Additionally, as the credit bureaus look to increase sales of credit reports, you can bet that more and more sectors are going to be pitched on the idea that your credit worthiness and history is a direct reflection with how you'll perform in a totally unrelated areas.  In our experience working with more than 25,000 clients we have found that this is increasingly true, and a primary reason for retaining our firm to help them with their credit repair.

But, don't take our word on it, here's what the Wall Street Journal recently had to say about it:

"A growing number of companies — many of them having nothing to do with the business of offering credit — are also scrutinizing the data on those reports to decide whether to do business with you, and how much to charge."

To read their article click here.

Of course this is a topic that we frequently discuss, here is a link to another article that we wrote regarding your credit score range and what it means to you.

 

About Anthony Candella

Anthony is the founder and Directing Attorney of YourCreditAttorney.com and has been helping consumers just like you understand and improve your credit and financial situation since 2003.