Your credit situation impacts you in more ways than you may think. Many Canadians have the misconception that having bad credit only affects their ability to obtain financing however, having bad credit can affect you in many ways. Here are some examples: Obtaining financing: Your credit situation will first decide if you get approved or not. If you do get approved, your credit will help determine the interest rate and cost of borrowing. People with lower credit face higher borrowing costs and may even need to resort to payday loans. Getting a job: Many potential employers require a credit check before making an employment offer. If you have bad credit it may be a reason for an employer to think twice before extending an offer, especially in a competitive job market. Renting an apartment: More and more frequently a landlord will check the credit of a potential tenant. If you have bad credit it may be a reason for the landlord not to select you as a tenant for their place. Getting a cell phone plan: Cell phone providers like Rogers, Bell and Telus will check your credit before issuing you a monthly phone plan. If you want to avoid having a pay-as-you-go plan, having good credit will be necessary.