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Credit Reports Just when you think you're done with grades and report cards, along comes….your credit report. A credit report is just like a report card, but it tells certain people how well you're likely to do in “Real Life 101." Your credit report has an effect on almost every aspect of your life -- from where you live to what you drive, and even where you can work. Previously a credit report was used only for determining whether or not you were likely to pay back a loan from a financial institution. Today, it can be used to judge your character by anyone that will have a professional or business relationship with you. For example, a landlord might look at your credit report and see that you haven't been paying your credit card bills on time. That might suggest that you won’t pay your rent on time either. Sorry, but it looks like you might have to live with mom and dad a little longer. A prospective employer will look at transcripts and GPA and then check your credit. If your debt obligations are beyond the salary they are willing to pay, they will likely move on to the next candidate. You won’t get the job because not paying bills on time suggests that you might not turn in reports on time or even show up for work on time. If you live beyond your means (spending more than you make), you might be the kind of employee that's repeatedly in the boss' office asking for a raise because you're having trouble making ends meet. Why get that degree in computer engineering and rack up $15,000 in credit card debt while you're in college? Employers with the big money jobs are going to see your bad credit and turn away -- while you get stuck as a stock boy in a mom and pop grocery store until your credit clears up. There's another harsh reality: a bad credit rating means you will have to pay higher interest rates on loans or perhaps be turned down altogether. Find our more about credit reports and how you can improve your credit score: |