Some may see credit scores as just a number. Others, knowing the effect poor credit can have on obtaining a mortgage, might be inclined to say “Well, it doesn't matter to me because I rent anyway.” And still others, like those that refuse to use credit and live by cash means alone, may think that their credit score doesn't matter because they don't need credit anyhow.

However, all of those views are near-sighted and potentially dangerous to an individual's chances at success and savings on several levels. After all, poor credit can do more than limit your chances at obtaining a mortgage, it can lead you to obtaining a terribly high mortgage rate. The same holds true for insurance rates, too. And in the end, a poor credit score can ultimately jeopardize your chances for success on all kinds of levels, even eliminating your opportunity for new jobs or advancement in employment.

Insurance rates

Poor credit can cost you more money for less coverage when it comes to automobile, home, life and medical insurance rates. In order to protect themselves from potentially unreliable clients, most insurance companies set minimum credit score standards in order to guarantee that only the most responsible consumers get the best rates. In fact, many insurance companies view a good credit score as being a more responsible person in general and, therefore, potentially better and safer drivers.

According to an article found at Credit-Mending.com, a good credit score of 725 can save policy-holders more than 25 % on their rates, while even a relatively low credit score of 625 can equate to savings of 17 % or more.

Insurance companies are always considering safety. By maintaining good credit, a consumer is essentially telling insurance companies that they are safe, reliable and responsible. Those are the kind of customers insurance companies value most.

Looking for a job

Much like with insurance rates, employers are using credit scores to make assessments about a potential employee. To many employers, a good credit score means responsible and trusted behavior — two qualities of major concern for a potential employer. By maintaining a good credit score, a consumer is essentially telling the potential employer that they also behave with integrity in the workplace and can be relied on to meet deadlines, make meetings, be self-motivated and self-managing and make good decisions overall. And when the economy slumps lower, employers are looking for more ways to differentiate potential employees.

Home mortgages

It is likely that most any consumer familiar with home mortgages is aware that credit scores can affect eligibility. However, in a struggling market where housing prices are hitting rock-bottom and lenders are looking to find new customers, eligibility is only part of the concern. Eligibility for better rates is the true key to happiness.

Simply qualifying for a loan compared to qualifying for a loan with a good rate can be the difference between $1,300 a month payments compared to $850. So, if the sheer potential savings of nearly $500 a month isn't enough, consider the overall savings over the 30-year term of the loan. In some cases, the money saved could be enough to buy another future home or pay for a child's college education.

With that information at a consumer's disposal, one can clearly see that the costs of poor credit can be deep-rooted and lasting. The fact that poor credit and low credit scores can cost you money is clear. So, too, should be the fact that poor credit can actually cost you your future.