5 Reasons You Really Do Need to Care About Your Credit Score (Even if You Aren't Borrowing)

If you are not planning to borrow money any time soon, such as for a mortgage or a car loan, you may think your credit score doesn't matter that much.

But that's simply not the case. Your credit impacts many aspects of your financial life and you need to care what your score is, even if you aren't a fan of credit cards or other debt. Here are five big reasons why.

1. Landlords will look at your credit if you want to rent

If you are planning to rent an apartment, or rent office space or any other type of property, you will likely have to undergo a credit check. If you do not have a good credit score, your rental application will likely be turned down. Or you may need a cosigner or a larger deposit, which can push the property out of your price range.

You do not want to restrict where you can live and work just because you aren't interested in borrowing.

2. Utility companies look at your credit to determine your deposit

When you get water, sewer, or electricity turned on, or when you sign up for a cellphone plan or cable TV service, you will often be required to undergo a credit check. If you have a low credit score, this is a cause for concern for your provider.

As a result, you may be asked to make a large deposit, sometimes totaling hundreds of dollars or more. Or, in the case of cellphone service, you may be denied the ability to get a contract altogether.

Having to pay extra money just to get basic services is not something that anyone wants to deal with.

3. Your insurance rates are affected by your credit

In a small number of states, auto insurers are not allowed to consider your credit history when setting premiums for a policy. But, that's not the case in the majority of the U.S. In most places, if you have a low credit-based insurance score, you are considered a riskier person to insure and your premiums will be higher as a result.

Home and auto insurance are essential purchases that can't be avoided. Why get stuck paying more to insure your assets just because you don't think you need to care about your credit?

4. Potential employers may review your credit report

When you apply for a job, you may have to undergo a background check that could include a review of your credit history. This could be especially important if you're working with money or in a finance-related business. If you don't have a solid credit history, this could be a red flag to potential employers that makes it harder for you to get a job.

5. You may need to borrow some day

Finally, the reality is, even if you don't plan to borrow money any time soon, there could come a day when you have no choice. Your car might break down when you don't have money saved for a new one, for example -- and you may need a car loan so you can get to work on time.

You don't want to put yourself in a position where you're limiting your future options and get stuck with high-interest subprime debt if a day comes when taking out a loan isn't optional.

The bottom line is, not caring about your credit score will undoubtedly limit your future opportunities and could likely make you poorer. So, take steps to try to build your credit, including maintaining a good mix of different kinds of debt and paying all of your bills on time. You won't regret it.