The list just keeps on growing. Add risk-based pricing to the mix, which means cable/internet/phone companies can charge you more if they perceive you to be a credit risk.  This LifeHacker’s Two Cents article should be required reading before students take the first step to building their credit history, which will usually be a credit card or student loan. As we noted in an earlier post, having low credit scores can hurt in the relationship department too:)

Here are the disadvantages of a low credit score enumerated in this article:

• Your Cable, Phone and Internet Bills Can be Higher
• You’ll Pay a Higher Insurance Premium
• It’ll be Tough to Apply for a Mortgage
• You’ll Have Higher Interest on Other Loans
• You May Have Trouble Renting an Apartment
• You May Not Get the Job You Wanted

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Check out this NGPF Activity: Calculate FICO Scores

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.