"Five Ways Poor Credit Scores Costs You Extra Money"

Five Ways Poor Credit Scores Costs You Extra Money Most of us want a good credit report to obtain financing, credit cards, car and to buy a house. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you do not know about your credit can cost you money.Having a credit card means that you can book tickets, rent a car, and reserve hotel rooms. In addition to the convenience, your credit report can mean that you have to pay a higher deposit and fee for service everyday.Did you know that your credit history can keep you from getting utility connections, good telephone rates, best auto insurance, home owner insurance, or even make you get hired?



The first way
Some utility companies set minimum standards for service connections. If your report shows previous electricity bill collection account, you may not be eligible for service at all. And if the utility company agreed to connect your services, you have to pay a higher deposit than another customer with good credit who may not need to do any deposit.

The second way
The same requirements exist for telephone service. People with good credit history does not have to pay a deposit for a home phone or cell phone service. When we first got a cell phone with bad credit score, we had to pay a deposit of $ 300, for a cell phone. After fixing our credit, we have eight phones for our business, with zero deposit.

The third way
What many people do not realize is that a good credit allows them to get a better insurance rate. Insurance, car, and high quality of life, low homeowners' insurance companies set minimum credit standards for their policy holders, this means that consumers with bad credit have to pay more for less coverage. Many car insurance companies are now basing your monthly premiums on your credit score, these companies offer a 17% discount if you score over 625 and a 25% discount if you score over 725. Why? Because according to their study, people who take care with their credit well to be careful with their possessions and careful driver.

The fourth way
 Bad credit can cost you the job. More and more employers run a credit report and employ the applicant with better credit, with the assumption that a better credit equal to the integrity and character better. A friend of mine with a Master's degree and a 4.0 grade average are not getting hired, she was told her credit score did not meet their minimum standards and that they employ other people with less education.The fifth way
Bad credit score means you pay more for your home financing. Mortgage cost more in upfront fees and interest rates for people with low credit scores. How much you can save? A mortgage loan of $ 150,000, 30-year, fixed-rate mortgages, interest rates around 5.72 percent cost about $ 870 per month, a bad credit score to raise interest rates more than 9 percent and payments 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 per month.


Improve your credit score so that you can save money on everyday expenses, get a high-quality insurance, and the best mortgage financing.Thus the "Five Ways Poor Credit Scores Costs You Extra Money"may be useful.

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