Is Your Credit Score Costing You Money?

Most of us desire a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in mundane life expenses. What you don't cognize about your credit could be costing you money.

Having a credit card intends that you can tell tickets, rent a car, and modesty hotel rooms. Besides these conveniences, your credit report can intend that you must pay higher sedimentations and fees for mundane services.

Did you cognize that your credit history can maintain you from getting public public utility connections, good telephone rates, the best auto insurance, home owner’s insurance, or even maintain you from getting hired?

Some utility companies put minimum criteria for service connections. If your report shows aggregation accounts for anterior public utility bills, you may not be eligible for service at all. And if public utility companies do hold to link your service, you'll need to pay a higher sedimentation than another client with good credit who may not need to make any deposit.

The same demands be for telephone services. People with a good credit history don't need to pay sedimentations for home telephone or cell phone services. When we first got a cell phone with poor credit scores, we had to pay a $300 deposit, for one cell phone. After fixing our credit, we got eight cell phones for our business, with zero deposits.

What many people don't recognize is that good credit enables them to get better insurance rates. High-quality, low-cost home owners’ insurance, auto, and life insurance companies put minimum credit criteria for their policy holders; this agency that consumers with poor credit have got to pay more than for less coverage. Many automobile insurance companies now basal your monthly insurance premiums on your credit score; these companies offer a 17% price reduction if your score is over 625 and a 25% price reduction if your score is over 725. Why? Because according to their studies, people who are careful with their credit are also careful with their property and careful drivers.

Bad credit can cost you a job. More and more than employers run an applicant’s credit report and engage the individual with better credit, assuming that better credit bes better unity and character. A friend of mine with a Master's Degree and a 4.0 class average did not get hired; she was told her credit score didn't ran into their minimum criterion and that they hired another individual with less education.

Poor credit scores intends you pay more than for your home financing. Mortgages cost more in upfront fees and interest rates for those with low credit scores. How much tin you save? A mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200. As you see from these payment differences, good credit intends that you can finance a more than expensive house with the same income, or salvage $330 each month.

Boost your credit score so you can salvage money on mundane expenses, get high-quality insurance, and the best mortgage financing.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.