Credit Scores can cost you
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.
Car insurance companies will use credit profiles when you make application that may affect rates. Also Homeowner’s insurance agencies apparently have decided that, if you are a “credit risk,” it is probable that you are going to be making more claims. So, now there is another rate increase related to poor credit. By now, you can see that a credit profile is increasingly important and influences decisions made about us by more industries than the mortgage industry.
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.
If you have been denied employment, it is very possible that the employer checked your credit rating. If that rating is poor, the employer may suspect that you would not be a good employee (being dishonest, stealing, taking bribes). So, a poor score might cost you a job.
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.
Now is not the time to ignore our whole financial situation. Keeping in mind what our poor credit may be costing us, now is the time to fix it.