Credit score affects an individuals loan terms but also plays a vital role in fetching him a job. It is a known fact that businesses use credit scores as important constituent in the lending process, but nowadays their use is expanding. So, settle in to see who all uses you score to evaluate your credit risk:



Lenders: Credit score is used by the lenders to determine who gets credit and how much they pay. Most of the lenders prefer using the FICO scores created by Fair Isaac Corp., to assess the loan applications of the borrowers and set interest rates. If you do not have a so called perfect score then getting loans can be tough and can even cost you hundreds and thousands of dollars more in interest payments.





Landlords, utilities and cell-phone companies: Landlords often use the score to make rental decisions. They review the credit reports of prospective tenants to decide who gets the available apartments. Utilities companies typically use scores to decide whether to ask you to pay an amount of cash as deposit before offering you electricity or phone services.



Insurers to set rates: The majority of auto as well as home insurers often use credit score to help determine insurance ratings and premiums. Insurers and independent researchers have discovered a connection between credit risk and insurable risk. It has been noticed that individuals with decent credit scores hardly file some claims but as credit scores deteriorate, the tendency to file claims rises.