You probably already know a little bit about how credit scores affect you. Most likely, you know that you will pay higher interest rates if you have a low score. You know that you will pay lower interest rates if you have a high score. But I bet you didn’t know these eight things about how credit scores affect you.

How Credit Scores Affect You:
If you have a higher score, you might have an easier time finding a job. A whopping 60 percent of employers run credit checks on job candidates at least some of the time! In some states, a higher score means a lower insurance premium! Insurers have found a connection between a person’s three-digit score and his or her likelihood of making a claim. The lower your score, the more likely you are to make an insurance claim, so your rates may be higher. More and more landlords run credit checks. If your score is good, they will be more likely to award you with a rental unit. You might not even qualify for a loan in today’s tight market unless your score is 720. I’ve heard of people who have 719 scores, and their loan applications are denied! And if you do qualify for a loan with a score under 720, you will pay a lot more over the course of the loan, even with today’s ultra-low interest rates. In fact, according to MyFICO.com, based on October 18, 2010 interest rates, a person with a bad score would pay about $74,160 more in interest over the course of a 30-year, fixed-rate loan on a $216,000 loan than a person with a good score. Want to know how credit scores affect you? It could affect you to the tune of $74,160! And this figure just considers your mortgage. Imagine how much more interest you will pay if you have a car loan and credit cards! In fact, your existing credit card companies might increase your interest rates if your credit drops! If you are an entrepreneur, your business might have a hard time qualifying for loans and charge cards. In today’s world, the owners of a company must have a strong personal score (as well as a strong business score) before their loan applications are approved. You know all those people who constantly have “rewards miles” they got by using their Visa and MasterCard? The best rewards cards are reserved for people with 720 or higher scores. This means they save money on airfare and hotels. They qualify for “cash-back” rewards programs. Sometimes, they even save on groceries!

The list of how credit scores affect you goes on and on. With a higher score, you will have an easier time saving for vacations, investing in your retirement, sending your children to college. And perhaps most of all, a high score will mean that banks will compete for your business. But if your score is low, they can scam you with high interest rates!