Most of us want 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 everyday living expenses. What you don't know about your credit could be costing you money.
Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Besides these conveniences, your credit report can mean that you must pay higher deposits and fees for everyday services.
Did you know that your credit history can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner's insurance, or even keep you from getting hired?
Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if utility companies do agree to connect your service, you'll need to pay a higher deposit than another customer with good credit who may not need to make any deposit.
The same requirements exist for telephone services. People with a good credit history don't need to pay deposits 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 realize is that good credit enables them to get better insurance rates. High-quality, low-cost home owners' insurance, auto, and life insurance companies set minimum credit standards for their policy holders; this means that consumers with poor credit have to pay more for less coverage. Many automobile insurance companies now base your monthly premiums on your credit score; these companies offer a 17% discount if your score is over 625 and a 25% discount 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 employers run an applicant's credit report and hire the person with better credit, assuming that better credit equals better integrity and character. A friend of mine with a Master's Degree and a 4.0 grade average did not get hired; she was told her credit score didn't meet their minimum standard and that they hired another person with less education.
Poor credit scores means you pay more for your home financing. Mortgages cost more in upfront fees and interest rates for those with low credit scores. How much can 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 means that you can finance a more expensive house with the same income, or save $330 each month.
Boost your credit score so you can save money on everyday expenses, get high-quality insurance, and the best mortgage financing.
(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.
Jeanette Fisher, author of "Credit Help! Get the Credit You Need to Buy Real Estate," is on a one woman mission to help people buy their dream home or finance multiple investment properties. Jeanette teaches real estate investing and interior design psychology. For help with your credit, visit the Real Estate Credit Help Center at http://www.recredithelp.com
So-called "credit repair" companies claim they can remove negative information... Read More
Years ago your credit score was a big secret, known... Read More
Fixing a credit report starts with seeing what's on it.... Read More
Commercial collections: fixture of the new B2B cultureIf you're in... Read More
Americans are more concerned about identity theft than unemployment or... Read More
Even if you have heard of a credit report, you... Read More
Credit Cards are essential for any consumer today. However, when... Read More
How Lenders Operate ? And How They'll Make a Tidy... Read More
Let's face it, if you are facing the possibilities of... Read More
What is a balance transfer ? A balance transfer can... Read More
Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More
A credit report is basically a file about you kept... Read More
You hear people talk about credit reports all the time... Read More
LIVING IN CREDIT CARD UTOPIALet's just take a brief moment... Read More
The next time you open your credit card statement, take... Read More
When credit cards are used wisely they can be very... Read More
Credit is a funny thing. It can be a useful... Read More
Rewards cards have become the latest rage in the credit... Read More
Chances are you have received your share of "pre-approved" credit... Read More
Almost all students have and use student credit cards. Some... Read More
Until recently lawyers for victims of credit damage had little... Read More
Credit cards are a form of unsecured credit. The issuer... Read More
Make Money from StoozingStoozing, this is a sophisticated method of... Read More
Are you thinking of buying a house? Do you want... Read More
The Fair and Accurate Credit Transactions Act, signed into law... Read More
Most consumers are aware that they have something known as... Read More
As a young student I feared getting bad grades because... Read More
When you are deciding what type of credit card to... Read More
Did you apply for a personal loan only to be... Read More
Using a credit card wisely is an important step in... Read More
Many people may still not be aware of an amendment... Read More
When you apply for credit, those lending you the money... Read More
What are inquiries?When you apply for credit the creditor or... Read More
It goes without saying that your first and best defense... Read More
His hard earned money? Gone. Creditors on his back everyday.... Read More
Debt collection agencies are often a viable option for receiving... Read More
Identity theft is the fastest growing crime in America, according... Read More
It's the number one source of consumer complaints at the... Read More
Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More
If you're a college student, you probably already have a... Read More
Having a damaging credit record can hurt you in many... Read More
FREE credit checks or free credit reports. What are they... Read More
On one hand consumers are being universally criticised for running... Read More
Making Your Credit Rating Work For YouOne of the basics... Read More
For all people shop around for the best rate, there... Read More
Credit Score FactorsThe information contained on our credit reports affect... Read More
In the face of financial hardship, many seeking a responsible... Read More
Your credit report--a type of consumer report--contains information about where... Read More
Congress passed the Fair Credit Reporting Act several years ago... Read More
"I think money was stolen from my card" or "I... Read More
Credit scores: all lenders use credit scores to determine interest... Read More
If you are in danger of credit problems because you... Read More
For years, major credit card companies have allowed cardholders to... Read More
Under the Fair Debt Collection Practices Act, collectors are not... Read More
The Credit Report is like your scorecard in the lending... Read More
Bank robbery has grown to become a huge problem in... Read More
Identity theft is a growing concern among Americans, and rates... Read More
While working through my own debt situation, and helping others... Read More
Credit score is the key factor determining approval of almost... Read More
Having credit education is like knowing how to read. It... Read More
What you might not know about credit.Some people don't know... Read More
About Search Entries:Every time a lender checks your credit history... Read More
A good credit history is critically important for the consumer.... Read More
Credit counseling is a free service that many people with... Read More
There are many of us that have been badly stung... Read More
It's not as hard as you think to raise credit... Read More
Credit |