Most of us want a good credit report to obtain automobile financing, credit cards, and buy a house. But beyond these consumer loans, your credit report can cost you in everyday living expenses. Little do they know about your credit could be costing money. Having a credit card means you can order tickets, car rental and hotel room reservations. 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 prevent you from utility connections, good telephone rates, hired the best auto insurance, homeowners insurance house or even prevent you? Some utilities establish minimum standards for service connections. If the report shows collection accounts for prior utility bills, can not be eligible for service at all. Y if the utility companies agree to connect the service, you have to pay a higher deposit than another customer with good credit who do not need to make any deposit.
Similar requirements exist for telephone services. People with good credit do not pay your deposits from your home or cell phone service. The first time you have a cell phone with poor credit scores, we had to pay a deposit of $ 300 on a cell phone. After fixing our credit, we have eight cell phones for our business, with zero deposits. What many do not realize is that good credit enables them to obtain better insurance rates. Governor Cuomo might disagree with that approach.
High quality, low-cost insurance homeowners, auto, and life insurance companies set minimum credit standards for its insured, which means that consumers with bad credit have to pay more for less coverage. Many auto insurance companies now base your monthly premiums on your credit score, these companies offer a discount of 17% 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 they are very careful with their property and careful drivers. Bad credit can cost you a job. More and more employers implementing the applicant’s credit report and hire the person with better credit, assuming that better credit equals better integrity and character. A friend of mine, a master’s degree and a 4.0 grade average of not being hired, she was told her credit score did not meet its minimum level and that it hired another person with less education. Poor credit scores means you pay more for housing finance. Mortgages more in upfront fees and interest rates for people with low credit scores. How much can you save? A mortgage loan of $ 150,000 for 30 years, fixed rate mortgage, interest rate of about 5.72 percent costs around $ 870 a month, poor credit scores raise the interest rate of more than 9 percent and the payment of more than $ 1,200. As you can see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $ 330 every month. Boost your credit score so you can save money on everyday expenses, assured of high quality, and the best financing for the mortgage. (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 mission of a woman to help people buy their dream home or finance multiple investment properties.