The Cost of your Credit Score
It is time for us to dig in and learn about how our credit scores affect us. Our credit score is a very important 3 digit number. Some of us actually have no idea what our score is. Sure we know that if our score is too “low,” it’s possible we will have difficulty getting a mortgage, automobile loan, credit card or any other kind of loan. These are the “biggies.” We must increase our understanding of our score and the possibly unknown effects of a poor score.
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.
We need to inform ourselves about other areas, in addition to the obvious ones, in which credit scores play a role. Currently the importance of a credit score can impact us in ways that we would have never imagined and might find hard to believe.
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.
A very large concern is our health care and life insurance. Credit profile is again important. When people are unable to keep up the payments for these insurances, insurance company costs rise and so do our rates. Again, 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.
With the current credit crisis, it will be most important for us to find out our credit score. If it’s low and we are a “credit risk,” we need to repair our credit. It is possible that some of us are in for a surprise and not a happy one.
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.
Related posts:
- GOOD CREDIT IS A MUST
- Can You Get a Mortgage Loan with Bad Credit?
- Can You Get a Mortgage Loan with Bad Credit?
- Credit Repair – agency credit repair
- How the Credit Crunch is Crunching Out First Time Buyers
Tags: auto loan, bad credit repair, credit cards, credit fix, credit repair companies, Credit repair services, credit restoration, economy, finance, increase credit score, Money, mortgage, Mortgages
