5 Ways Your Credit Score Is
Costing You Money. . .
Even If You Never Borrow A Dime!
I'd like
to quickly share with you how your credit score could be
costing you a fortune-- in more ways than you might
think.
We all know a
low credit score will make borrowing more expensive because of
higher interest rates charged by lenders and credit card
companies to people they regard as higher credit
risks, but its truly devastating effects are understood by
very few.
For example,
if you purchase a $200,000 home on a 30-year fixed mortgage at
8% interest instead of 6% (because of your credit score); that
extra 2% is going to end up costing you a total of $96,934.11
over the term of the loan. Just think about how much longer
you’ll have to work to pay off $96,934.11 because of an extra
2% in interest! Of course, the same principle applies to
the interest you'll pay on your auto loan and your credit
cards.
The part few
people talk about or think about is all the other areas in life
where a low score will increase your cost of living. For
example, in addition to paying more for your home, automobile,
and credit card purchases, a low credit score will most likely
have you paying more for the following as well:
AUTO
INSURANCE-- As many as 92% of the 100 largest personal
automobile insurers use credit information to underwrite new
business, according to a 2001 study by Conning & Co., an
insurance-research and asset-management firm.
HOMEOWNERS INSURANCE-- It's
thought that many homeowner's insurance companies see a
correlation between low credit scores and increased property
insurance claims. Therefore, a low score will result in higher
rates.
LIFE and HEALTH
INSURANCE-- Customers who become unable to pay
their monthly insurance premiums result in a loss for the
company, so premiums for private or personal health insurance
policies are partially dependent on your credit information,
which more and more companies are obtaining prior to issuing a
quote.
EMPLOYMENT-- One of the more
shocking areas where a low credit score will cost you is in the
area of employment. It’s estimated that about a third of
employers now do credit checks on applicants before hiring
them.
While many
employers claim they look at your credit report only to
“verify” information on your application, such as where you
live and where you have worked, we can assume they are looking
at how you handle your financial affairs as well. Some
employers feel that people with poor credit, who can't handle
their finances properly, may not be good employment
risks.
Bad enough if
your credit report accurately reports that your credit history
is problematic. Now think about the fact that one survey
estimated that nearly 80% of all credit reports contain errors
- 25% of which are serious enough to cause the denial of
credit, and perhaps employment.
The bottom
line is that a low credit score or credit rating can cost you
real money, or even keep you from getting the job you want--
and your low credit rating might not even be your fault!
You need to check your credit bureau reports, and get negative
and erroneous entries removed. Our Credit Secrets
Bible will show you how to do it.
CreditRepairForBadCredit.com is a project
of Wealth Instead, LLC. The company was founded as a vehicle to
market an Internet-based debt reduction system, although over
time we have started to see it in broader terms around the idea
of credit, debt, and wealth in general.
Source: http://www.CreditRepairForBadCredit.com/5-Ways-Bad-Credit-Is-Costing-You.html
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