Society is becoming increasingly dependent on using credit to make purchases and decisions. These days, good credit is used for more than just getting a credit card or a loan. More and more businesses are making the case that your credit should be used to make decisions about extending goods or services to you.

Shelter

When it comes to where you live, your credit is important. Mortgage lenders want to know that you won't default on your mortgage. If you don't have good credit, the lender will consider it risky to give you a mortgage loan. This could result in a higher cost of borrowing or worse, a denial of the loan.

Don't think that because you're not on the market for a new home, that your credit won't be called into question. Your credit is used for rental decisions, too.

Transportation

Unless you have the cash to purchase a car, you'll have to get a loan. Your credit not only affects whether or not you qualify for a loan, but also the amount and interest rate of the loan. Generally, loan applicants with good credit qualify for larger loan amounts with lower interest rates.

Employment

Many employers conduct credit checks as a part of the hiring process. If you haven't demonstrated financial responsibility, a prospective employer might be hesitant to hire you. For example, the employer might believe your level of debt is too high for the salary offered.

Entrepreneurship

Many people have dreams of starting their own business. Most business startups require a sizable amount of cash that you might not have available. In that case, you'll need to obtain a small business loan. Among other things, you need to have good credit to qualify for the business loan.

Utility Services

It might be somewhat shocking to learn that your credit is needed to establish utility service. Your electricity company contends that you're borrowing one month of electric service. So, before turning on your electricity, the company will check your credit. This applies to most utility services including cable, telephone, water, and even cell phone.

Since your credit is defined by how you've paid (or not paid) your bills in the past, many businesses - landlords, mortgage lenders, utility providers, and even employers - use your credit to predict your future financial responsibility. Anytime you need to borrow money, or even services, your credit is called into question. This is why maintaining good credit is so important.