Yes, your credit score does impact you financially. According to the US government agency, Federal Trade Commission, there are many ways you could be impacted financially. If you would like to read all the FTC details, use this link, Free Credit Reports

Who may ask to run your credit report.

1. Employers
2. Life Insurance Companies
3. Mortgage Companies
4. Leasing Companies (residential or commercial/industrial)
5. Car Loan Companies
6. Personal Loan Companies
7. Credit Card Companies

OK, so you don’t have life insurance, a mortgage, a car loan, a personal loan, or credit cards. That’s great! It’s likely you have little debt. So, you may be thinking, credit does not affect me financially. What about your job, or potential job? More and more employers are obtaining credit reports during the interview/background check process. All things being equal, if another candidate had a much stronger credit profile, who would get the job? I can’t think of a bigger financial impact than a missed opportunity on a potential job.

Moving on, assuming you do not live with your parents or extended family, you need shelter. It is common practice to run credit on a tenant prior to renting a space. Once again, you could lose the opportunity to a potential tenant with stronger credit. Has this happened to you? Or maybe you found the perfect spot, but didn’t get it. Instead, you settled on a place not as good. The “not as good” part could mean less amenities. Oh yes, there is a financial cost to reduced amenities. What about these:

1. No garage (natural elements as well as potential vandalism or car theft)
2. Longer commute (more wear and tear on you car)
3. No gym on site (joining a gym costs money)
4. Not enough space (keeping excess in storage for a fee)

Back to the original list, at the present point in your life, you may have few reasons to be concerned about your credit. As you get older, life events will likely bring all 7 listed into play.

In conclusion, if your credit can be improved, don’t wait. Act now. If your credit is in great shape, maintain it. You will experience a financial impact if you do not.