Who Looks At Your Credit Score?

Nowadays, it seems that almost every business is trying to find a reason to check into your personal credit score.  Most businesses that do check it seem obvious, such as banks, but other businesses that check it might surprise you. 

When you submit any application for credit, that business is almost sure to check your score as part of the process to determine if they should grant you credit.  Most of the time lender have a bottom score at which they will not grant credit to anyone.

Any of one of your current lenders, especially credit card companies, could periodically look at your score to determine any adjustment to your current interest rate, credit limit or both.  Unexpected changes in your credit limit or interest are usually caused by a change, whether good or bad, in your score.  However, as always, you are able to call your lender to inquire why any change occurs to your account. 

Anytime you submit an application to buy a car with a loan, your score is pulled.  Once again, they do this is to determine if they should grant you a loan.  Once they grant you the loan, then your score plays a part in determining your interest rate for the loan.  Mortgage lenders use the same practice when you apply for credit during the home buying process. 

Private lenders for school loans and a few federal student loans look at your score in their decision making process in granting loans.  Once you graduate or leave college, if you ever wish to consolidate your loans, again, your score will play a part in determining your eligibility and your interest rate for the loan.     

The parties mentioned above are types of companies that are well known for looking at credit scores.  However, some of the other parties discussed next are not as obvious. 

Anytime you want to have your utilities connected with a new company, then the respective utility company looks at your score to determine if you must put down a deposit.  Their rationale behind this is that you are asking them to extend a month of service to you.  In return, they want to know the likelihood that you will pay them.  All of the different types of utilities companies use this practice, including cable companies, water and power companies.  When you sign up for cell phone service, your credit score is used for the same reason.  

Another uncommon business to use your score is apartment building complexes.  They want to try to gauge how likely you would be to a rent payment or skip town.  A low credit score will usually cost you a higher deposit than someone with a good credit score, or your might even cause a denial of your application for the apartment.