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6 Ways Your Credit Report Is More Important Than You Think

Credit reports play an important role in your life beyond the world of credit cards, mortgages and student loans. As you build a credit history, you're developing a key component of your future that may affect your job, where you live and even the phone in your pocket.

Loan officers and credit card companies aren't the only ones who use credit reports when making decisions, but many people don't realize how influential credit reports are until they've been burned by their own.

"Credit reports are becoming important in almost every facet of our lives," said John C. Heath, a credit expert and attorney with Lexington Law, a Credit.com partner.  Credit reports carry significant weight in the following scenarios, much to many consumers' surprise.

1. Applying for a Job

A company or hiring manager will generally review your credit report for one of two reasons: reliability or security, said Rod Griffin, Experian's director of public education. Some employers feel that a credit report can address both of those concerns.

Employer credit checks are a little different than others. First, the employer has to get your written consent to review your credit report (unlike other credit report requests) and an employer will never see your credit score, Griffin said.

Because credit reports contain so much data, they can be used to verify an applicant's identity, like their name, address and previous employers. The financial insights provided by credit reports can also be valuable to employers filling positions that involve handling money or require security clearance.

"It can show signs of financial stress," Griffin said of a poor credit report. "It makes you a greater security risk. You're potentially more subject to bribes … That's sort of the underlying thought process."  Read More

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