Not many things in life can have a more significant negative impact on your finances than a poor credit score. A low credit score can hurt you in ways you know of, and in ways you’ve never even thought of.  When it comes down to it, bad credit can cost you in the following ways:

Mortgage: When it comes to good credit, mortgage is the Mecca. Yes, good credit is that important. Good credit qualifies you for loans. So, in other words, it literally helps you buy a house. But, it is more than just this. Good credit also helps you get a reasonable rate. With good credit, you may find yourself paying a 5% interest rate. With bad credit, this interest rate could be 10% or 11%. While this might not seem like a big deal, over time it can add up to you paying forty or fifty thousand dollars more for a house.

What’s more, bad credit can not only keep you from buying, it can also keep you from renting. If your credit is bad, an apartment complex may feel weary about renting to you. This could lead them to either reject your application, or charge you more initial deposit and monthly rent.

Refinancing: Once you have a home, bad credit may keep you from refinancing. Many people refinance - it’s a common practice - but if you have bad credit, you might not be able to have as much equity as you’d like. The lower your credit, the lower the equity you will be able to take out. Even then the amount that you do take out will be smacked with a higher interest rate than it would be if you had a good credit score.

Insurance Rates: Unbeknownst to most, your credit score can actually affect your insurance rates. Studies have proven that those who have bad credit are more likely to file a claim than those who have good credit.  This causes insurance companies to compensate by making the premiums of those with bad credit higher than they would normally be.

Car Loans: Just like with a home loan, a car loan is also dictated by your credit score. If you have bad credit, you may end up paying one or two hundred dollars more a month than you would if you had good credit. Unfortunately, this doesn’t mean you will be paying off your car loan quicker: the extra dollars a month apply mainly to just interest.

Utilities: Believe it or not, utility companies look at your credit score. While they might not reject you out right (you can’t just not have electricity), they may force you - if you have bad credit - to pay a deposit, sometimes up to $500. Along these lines, bad credit can also limit the cell phone plans that are offered to you. With particularly bad credit, the only cell phone plans you might be offered may be the “pay as you go” plans.

School Loans: For anyone hoping to pay for their schooling through loans, credit score is very important. Bad credit can keep you from getting a loan, compromising your education in the process.

Medical Care: Necessary medical care might not be dictated by good credit, but elective procedures are. If you hope to have plastic surgery or laser eye surgery (or anything else that can be construed as elective), your credit best be good. If it’s not, you probably won’t be approved for service by your doctor.

When it comes down to it, bad credit shuts the doors that good credit opens. It might not seem like a big deal, but bad credit creeps up on you and stays with you. Whether bad credit costs you a house or a car, it will, no matter what, cost you a lot.