Bad Credit Affects Utilities
When you have bad credit, you expect to be turned down for certain things. Loans, mortgages, and even jobs might not come as a surprise. But low credit scores affect utilities more than one would realize. Utilities cover the basic services in your home such as gas, water, electricity, internet, phone, and cable. We use all of these services on a daily basis without considering how much we really depend on them.
Believe it or not, utility firms care regarding your credit score!
Utility bills are forms of credit where you pay a monthly fee that covers the average amount that you might use throughout the year. For gas and electricity suppliers, this might mean you’re paying more in summer than you use and less. It’s a simple technique that energy suppliers have been using for years. They supply us all with the utilities we need, without putting us out in the winter months.
Of course, gas and energy suppliers run the risk of people using their services without paying their bills. People with bad credit can expect to be pay more than those with good credit ratings for the same product.
If you’ve got dangerous credit you’ll expect to own to pay a hefty deposit when gap your account and/or you’ll be needed to own a co-signer.
Though it is highly unlikely that you will be denied outright your utilities (which is more likely to happen when you’re applying for a mainstream loan), utility companies will protect themselves in other ways. Some companies assess you for a deposit or require a letter of guarantee before they agree to deliver the services. This is not allowed for low income families. This guarantee means that, fail to pay your bills and the company will be able to ask the guarantor for the money. This might seem like a simple way to get your utilities supplied. But failing to keep up with our payments can cause problems with relationship with the utility company.