How Credit Scores Affect Your Non-Credit Life

Updated July 2026

Your credit score is more than a three-digit number. It’s your ticket to mortgage approvals, credit cards and auto loans.

Credit scores range from 300 to 850, and most lenders classify anyone with a 680+ credit score, based on the FICO Score model, as a “good applicant.”

If you don’t have the best credit history, you probably know that your chances of obtaining any type of loan are slim to none. And if you’re currently working to improve your credit score through the tools offered by bureaus like Experian, Equifax, or TransUnion, you know it can be an uphill battle.

Recovering from past credit mistakes isn’t the easy job. For the time being, paying cash may be your lot in life, and you accept the fact that getting credit is out of the question.

However, a low credit score doesn’t just affect your credit life. It can affect other areas of your life as well, resulting in paying more for common services or missing certain opportunities entirely.

Housing: How Credit Scores Affect Renting an Apartment

A low credit score may not stop you from renting an apartment, but it can reduce your housing options. For example, if you’re interested in living in a luxury apartment building, these landlords may have tougher credit requirements and only approve those with high credit scores. If you’re approved with bad credit, the landlord may require a higher security deposit or a cosigner. Property management companies increasingly pull scores through services tied to TransUnion or Experian before finalizing a lease.

Take this: a tenant with a 650 FICO score might pay a $1,200 security deposit. Someone with a 750 score in the same building might pay only $600. That’s a $600 difference, equal to five months of rent in some markets. It’s not just a fine; it’s cash tied up for months.

Banking: Credit Checks, ChexSystems, and Opening an Account

A bank may not run a traditional credit check when you open a new account. However, they will run your name through ChexSystems. This is an account verification service used by banks and financial institutions, including large ones like Chase and Bank of America. If you’re a check bouncer who likes to overdraft your accounts, a bank may refuse your application to open a checking account. This isn’t governed by your FICO Score at all, it’s a separate database tracking banking behavior, not loan repayment.

This tool doesn’t help people with past overdrafts rebuild trust. If you’ve bounced checks or left unpaid fees, ChexSystems will flag you, even if your credit score is solid. You can’t skip this hurdle by improving your FICO alone.

Utilities and Cell Phone Service

If you need electricity, telephone or cell phone service, you may feel that these services have nothing to do with credit. And technically they don’t. But this doesn’t stop service providers from running a credit check on every person who applies for an account. They’ll request your Social Security number, and with your permission, conduct a credit check to identify payment habits. For those with bad credit, utility and cell phone companies typically require an upfront security deposit, sometimes running into hundreds of dollars depending on the provider and state.

For example, a customer with a 550 FICO score might be asked to pay $300 upfront for a Verizon wireless plan. Someone with a 700 score could get approved with no deposit. That $300 isn’t interest. It’s a hold until service ends, and it could take months to get back if you cancel.

Employment: Do Employers Check Credit Scores?

Yes, in many industries. If you apply for a job in the finance industry or with the government, a credit check may be part of the background check. Some employers are particular about who they hire to handle certain jobs. From an employer’s standpoint, applicants who demonstrate excellent money and credit management skills are likely to perform well in certain positions.

According to research compiled by Demos, citing a Society for Human Resource Management survey, 47% of employers conduct credit checks on some or all job applicants. That same research found that 1 in 10 unemployed survey respondents were informed they would not be hired for a job because of information in their credit report. This raises a real fairness question: people who most need a job to rebuild their finances are sometimes screened out because of the very credit troubles that job could help fix.

For example, a company looking to hire an accountant isn’t likely to hire someone who never pays his personal bills on time. If this person can’t manage his own finances, how can he manage the company’s finances? The Consumer Financial Protection Bureau (CFPB) has noted that employment background checks involving credit reports are governed by the Fair Credit Reporting Act, meaning employers must get your written consent before pulling one.

But here’s the catch: this rule doesn’t protect you if the employer never discloses they ran a check. Nor does it stop them from using a credit check to disqualify someone who’s otherwise qualified. The process is opaque. You may never know why you didn’t get the job.

Insurance: How Your Credit Score Affects Premiums

Credit checks are common in the insurance industry. An insurance company may not reject your application if you have bad credit, but the company may increase your rate, resulting in higher premiums.

The FTC’s full analysis, detailed in a report to Congress, examined how these scores affect premiums, risk prediction, and different demographic groups in automobile insurance. State regulators haven’t ignored the issue either. The National Association of Insurance Commissioners continues to monitor how credit-based insurance scores affect consumers, and several states restrict or ban their use for setting rates.

Take a driver in New York. With a 600 credit score, their auto insurance could cost $1,250 per year. With a 750 score, the same policy might run $975. That’s a $275 annual difference. Over five years, that’s $1,375 in extra cost. It’s not just a number, it’s real money you can’t spend on groceries, rent, or savings.

Non-Credit Impacts at a Glance

Frequently Asked Questions

Can a bad credit score stop me from renting an apartment?

It usually won’t disqualify you outright, but it can limit your options. Landlords, especially those managing luxury buildings, may require a larger security deposit or a cosigner if your score is low.

Do employers check your credit score before hiring you?

Some do, particularly in finance and government roles. Research cited by Demos found that 47% of employers conduct credit checks on some or all applicants.

Can I be denied a job because of my credit report?

Yes, it happens. According to the same Demos research, 1 in 10 unemployed survey respondents said they were told they would not be hired because of information found in their credit report.

Does checking my own credit score hurt it?

No. Checking your own score is a soft inquiry and does not affect your FICO Score. Only hard inquiries, like those from a lender reviewing a loan application, can cause a small, temporary dip.

Why did the bank deny my checking account application if my credit is fine?

Banks typically use ChexSystems, not your traditional credit report, to screen new account applicants. A history of overdrafts or unpaid bank fees can trigger a denial even with good credit elsewhere.

Does my credit score affect my car insurance premium?

In most states, yes. The FTC has found that credit-based insurance scores are effective predictors of the claims a consumer is likely to file, and insurers use them to set premiums.

Can I get a security deposit waived for utilities with bad credit?

Some providers allow it if you pay a larger upfront deposit or provide a guarantor. Policies vary by company, so it’s worth asking your provider directly what alternatives exist.

Is a 680 credit score considered good?

Generally yes. Most lenders classify a score of 680 or above as a “good applicant” range, though requirements differ by lender and loan type.

What’s the difference between a credit score and a credit-based insurance score?

A standard FICO Score predicts loan repayment risk. A credit-based insurance score, reviewed by the FTC in its report to Congress, is a separate calculation insurers use specifically to predict the likelihood you’ll file a claim.

Do all states allow insurers to use credit-based insurance scores?

No. Some states restrict or prohibit the practice. The National Association of Insurance Commissioners tracks state-level rules and ongoing regulatory review of the practice.