5 Ways Poor Credit Scores Costs You Extra Money
by: Jeanette Joy Fisher
Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don't know about your credit could be costing you money.
Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. 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 keep you from getting utility connections, good telephone rates, the best auto insurance, home owner's insurance, or even keep you from getting hired?
1. Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if utility companies do agree to connect your service, you'll need to pay a higher deposit than another customer with good credit who may not need to make any deposit.
2. The same requirements exist for telephone services. People with a good credit history don't need to pay deposits for home telephone or cell phone services. When we first got a cell phone with poor credit scores, we had to pay a $300 deposit, for one cell phone. After fixing our credit, we got eight cell phones for our business, with zero deposits.
3. What many people don't realize is that good credit enables them to get better insurance rates. High-quality, low-cost home owners? insurance, auto, and life insurance companies set minimum credit standards for their policy holders; this means that consumers with poor credit have to pay more for less coverage. Many automobile insurance companies now base your monthly premiums on your credit score; these companies offer a 17% discount 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 are also careful with their property and careful drivers.
4. Bad credit can cost you a job. More and more employers run an applicant?s credit report and hire the person with better credit, assuming that better credit equals better integrity and character. A friend of mine with a Master's Degree and a 4.0 grade average did not get hired; she was told her credit score didn't meet their minimum standard and that they hired another person with less education.
5. Poor credit scores means you pay more for your home financing. Mortgages cost more in upfront fees and interest rates for those with low credit scores. How much can you save? A mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200. As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month.
Boost your credit score so you can save money on everyday expenses, get high-quality insurance, and the best mortgage financing.
Copyright © 2006 Jeanette J. Fisher. All rights reserved.
About The Author
Jeanette Joy Fisher FREE Credit Help Teleseminar. Get expert advice on building your credit from credit and real estate college instructor Jeanette Fisher (www.jeanettefisher.com). More free credit card debt help and FREE Credit Tips ebook http://worryfreecredit.com.
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Comparing Credit Cards
Comparing Credit Cards
by: Rudy Hadisentosa
Like any merchandise, you need to compare credit cards too before you actually decide on which one to go for. The selection of a credit card should not be based just on what is good, since there is nothing like a good credit card. Neither should it be based on the recommendations from a friend. The credit card that fulfils your needs is the one which is good for you. Something which fulfils someone else?s need would not necessarily be good for you since everyone has their own needs. Moreover, do not get bowled over by all the offers being run by a particular credit card. A lot of them are just selling tactics and might not meet your requirements (and you can?t keep changing credit cards each fortnight).
So the first step is to evaluate why you need a credit card. List down all your requirements and classify them as primary, secondary and tertiary needs. Next, search for the credit cards that fulfill...
Comparing Credit Cards
Term life insurance > Comparing Credit Cards
Home-Based Business Owners, You Need Insurance Coverage
Home-Based Business Owners, You Need Insurance Coverage
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When you start a home-based business, buying insurance may not be your first priority, but you cannot afford to ignore it either. When the unexpected happens -- and it will -- having insurance coverage may mean the difference between the success and failure of your home-based business.
You may not require all types of insurance listed here, but taking some time now to consider your insurance needs can save you money and headaches in the future. Ultimately, after reading this article, the best way to determine your complete needs is to consult with your insurance agent. Explain to them the details of your home-based business and he or she should be able to determine the best insurance coverage for you (and any employees).
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Home-Based Business Owners, You Need Insurance Coverage
Term life insurance > Home-Based Business Owners, You Need Insurance Coverage
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Constipation: Tips for Easy, Long-Term Relief
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Constipation isn?t the direst problem you?ll ever have, but wouldn?t it be nice if you were able to avoid it forever?
No more intestinal pains from cramping, no more straining when using the bathroom, no more days of agony ? sounds good, right?
Constipation is the result of one of the following:
- Bad eating habits that don?t provide you with another fiber for easier elimination
- Prescription or over the counter drugs
- Not drinking enough water or juice
- Not enough exercise
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The solution is making healthier changes in many areas of your life.
Eat better.
While this seems impossible in your fast-paced, fast food life, you can make smarter choices.
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Term life insurance > Constipation: Tips for Easy, Long-Term Relief
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Today, it's more important than ever to have a good credit rating. Don't get me wrong it has always been important to have good credit if you want to buy a car, a house, rent an apartment, or be approved for personal loans or credit cards. However, today more and more employers are looking at credit reports as part of...
The Easy Way To Build A Great Credit Report
Term life insurance > The Easy Way To Build A Great Credit Report
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What is an algorithm-proof site? Technically, there?s no such thing. Since we don?t know exactly what the search engine formulas for ranking are, from that standpoint we can?t really be sure that our site won?t drop out of the search engines with every update.
For our purposes, an algorithm-proof site is one that seems to stay in the top five rankings for a desired keyword term through each search engine update. These sites never seem to lose their rankings no matter what happens. And if you?ve recently lost your search engine positions, or are starting a new site, this is the type of site you will want to have.
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In short : Is there a secret to building an algorithm-proof site?
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Building An Algorithm-Proof Site Part Three
Term life insurance > Building An Algorithm-Proof Site Part Three