There is no way around your credit profile. A good score shows you have a positive history of borrowing and repaying, and can help to provide ready access to cheaper loans, mortgages, energy, mobile phones, the list goes on.
What’s more, the advantages of a strong credit profile extend far beyond good rates on credit. We’ve put together some of the other ways a good credit score can improve our everyday lives. For useful information about how to build and maintain your credit score, see our beginners guide to credit.
Believe it or not, your credit history can impact your ability to secure the job you want. When hiring new people, everyone wants the best talent, and so, when it comes to choosing between different candidates, some employers will ask you if they can run a credit check against your name.
No matter how well you performed at interview, having a good credit score is an added assurance for your next employer that you are as responsible and reliable as you seem. Late repayments or a low score could raise a red flag and mean the other candidate is offered your dream job!
The credit reporting agency, Experian has published information about how credit scores can affect employment.
We all enjoy hot water, electric power, and endless data. Utility companies, such as gas, electricity, broadband and mobile phone providers, often check new customers’ credit history to get an insight into their payment behaviour. If you have a low credit score, it is likely you will need to pay a deposit or be placed on a pay-as-you-go meter for your utilities.
On the other hand, if you have a strong credit history, a greater number of companies will want your business - allowing you to negotiate and choose the provider that offers the best deal.
A good credit history brings many advantages, one of which is a choice of credit cards. Aside from varying APRs and 0% transfer offers, these little bits of plastic can offer some juicy benefits - like cash back, or rewards schemes that offer money off travel, supermarket shops or hotel stays. Some card providers even offer their customers exclusive invitations to glamourous events.
While it is always important to look at the terms and conditions of any credit card, the better your credit score, the more likely you are to be approved for cards with added benefits.
With a good credit history, you don’t have to search for offers, they come to you. This comes in handy, if you’re looking to refinance, apply for insurance, take out a personal loan, upgrade to a better credit card, change your utility provider for better rates and so on!
Remember, having a bad credit history is not the same as being in financial difficulty. If you think you are in financial difficulty or are finding it difficult to pay your bills on time you should seek an alternative solution. To get debt advice information, we advise seeking independent advice from an impartial service like Citizens Advice or a qualified Financial Advisor.