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Many people know how a credit score works and how it can affect their ability to receive credit cards at a reasonable interest rate in the future.  What many people do not understand is that a bad credit score has the ability to affect other areas of their lives as well.  There are a number of different ways that a bad credit score can affect other areas of a person’s life and the three ways listed below are some of the most common ways that a bad credit score can hurt you unexpectedly.

1.  Housing
Another area of your life that can be affected by a bad or low credit score is where you are able to live.  Most people know that a bad credit score can disqualify them from purchasing a house, but many people are unaware that having a low credit score can disqualify them from renting a house or an apartment.  Although most cases are determined on a case by case basis, individuals with very low credit scores have a much harder time being approved for a rental than individuals with higher credit scores.

Landlords review the credit scores and credit histories of their possible tenants to determine the amount of risk they pose to the property or to the landlord’s finances.  Individuals with low credit scores are viewed as less trustworthy than a person with a higher credit score, so the landlord may refuse to rent to individuals with a credit score below a certain threshold.  As long as the application is not denied on the basis of race or sex and all applicants are treated equally, the landlord’s actions are perfectly legal.

2.  Other Creditors
Although most people are aware that a bad credit score can affect their future ability to obtain credit, many do not know that a bad credit score can affect their existing credit accounts and their ability to obtain other types of loans from creditors, such as a car loan or a home equity loan.  If a person’s credit score falls below a certain rate, they may find that the interest rates of the credit cards that they have held previously have skyrocketed because that person is now considered to be a credit risk.  Higher interest rates on previous balances combined with an inability to obtain more credit or any type of loan has contributed to numerous individuals having to file bankruptcy in recent years.

3.  Employment
For many individuals, it is difficult to imagine how a credit score and being able to obtain employment may affect each other, but the fact is that a bad credit score is one of the leading reasons for a person to be passed over for employment or a promotion.  Certain types of employers look at an applicant’s credit score to determine how trustworthy and responsible the person is and any position of trust, such as an employment position with the government or in law enforcement, will review the applicant’s credit score to determine their security clearance.