Your Credit Score is Costing you Money
There is a mystery among us. It’s called a CREDIT SCORE and is something that many of us don’t understand and may not even know. It is a very important 3 digit number about which we need to become educated. You are most likely aware that that a “low” score will result in difficulty obtaining a mortgage, credit card, and car loan. However, even though these are at the top of the list of problems with poor credit, you need to be informed about your credit score and the fact that it may be costing you money.
First of all, if your score is low, you are likely determined to be a “credit risk.” In this case, if you are able to secure a mortgage at all, you will be paying an interest rate for your home that will be significantly higher than what is the usual for a mortgage. The amount of interest will cost you thousands over the term of the loan.
In addition to the “normal” loans we all know about, the credit score can affect you in a number of ways that you may never have thought about. Now is the time to learn about these areas.
Automobile insurance companies will use a person’s credit profile for writing policies. Homeowner insurance underwriters apparently have decided that when you have a low credit score, you will make more claims. Therefore, insurance rates get higher.
We all have concerns about health care. Some people are unable to keep current with life and health insurance payments. Therefore, costs increase for the insurance companies and insurance rates increase. Your poor credit can be affecting these rates.
Have you been denied employment? If this has occurred, it is possible that the employer checked your credit profile, found it poor and decided that you would not be a fit for his business. He might think you would steal or be dishonest in other ways. So, now it can happen that your poor credit is perhaps going to cost you employment.
Our country is having a credit crisis. It will be more difficult than ever to get credit. Therefore, if you credit score is low and you are a “credit risk,” you need credit repair. You may be in for a negative surprise so you need to get to work.
Please do not ignore your personal financial situation. Remember all the areas of life that are affected by poor credit so work on fixing your situation.