5 Ways Poor Credit Scores Costs You Extra Money

Most of us want a good credit report to obtaintheir policy holders; this means that consumers with
automobile financing, credit cards, and to purchase apoor credit have to pay more for less coverage. Many
home. But, beyond these consumer loans, your creditautomobile insurance companies now base your
report can cost you in everyday living expenses. Whatmonthly premiums on your credit score; these
you don't know about your credit could be costing youcompanies offer a 17% discount if your score is over
money.625 and a 25% discount if your score is over 725.
Having a credit card means that you can order tickets,Why? Because according to their studies, people who
rent a car, and reserve hotel rooms. Besides theseare careful with their credit are also careful with their
conveniences, your credit report can mean that youproperty and careful drivers.
must pay higher deposits and fees for everyday4. Bad credit can cost you a job. More and more
services.employers run an applicant?s credit report and hire the
Did you know that your credit history can keep youperson with better credit, assuming that better credit
from getting utility connections, good telephone rates,equals better integrity and character. A friend of mine
the best auto insurance, home owner's insurance, orwith a Master's Degree and a 4.0 grade average did
even keep you from getting hired?not get hired; she was told her credit score didn't meet
1. Some utility companies set minimum standards fortheir minimum standard and that they hired another
service connections. If your report shows collectionperson with less education.
accounts for prior utility bills, you may not be eligible for5. Poor credit scores means you pay more for your
service at all. And if utility companies do agree tohome financing. Mortgages cost more in upfront fees
connect your service, you'll need to pay a higherand interest rates for those with low credit scores.
deposit than another customer with good credit whoHow much can you save? A mortgage loan of
may not need to make any deposit.$150,000, 30-year, fixed-rate mortgage, interest rate of
2. The same requirements exist for telephoneabout 5.72 percent costs around $870 a month; poor
services. People with a good credit history don't needcredit scores raise the interest rate over 9 percent
to pay deposits for home telephone or cell phoneand the payments over $1,200. As you see from
services. When we first got a cell phone with poorthese payment differences, good credit means that
credit scores, we had to pay a $300 deposit, for oneyou can finance a more expensive house with the
cell phone. After fixing our credit, we got eight cellsame income, or save $330 each month.
phones for our business, with zero deposits.Boost your credit score so you can save money on
3. What many people don't realize is that good crediteveryday expenses, get high-quality insurance, and the
enables them to get better insurance rates. High-quality,best mortgage financing.
low-cost home owners? insurance, auto, and lifeCopyright ? 2006 Jeanette J. Fisher. All rights reserved.
insurance companies set minimum credit standards for