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.
When you are a “credit risk,” you will be paying higher interest rates, if you can get credit at all. For example, if you mortgage a home for an interest rate higher than the norm, over the course of that loan, you will be paying thousands of dollars more in interest.
Right now credit scores are impacting us in ways that we might find hard to believe and in ways that we might feel are ridiculous and unfair. This is why we need to inform ourselves about these other areas that are impacted by credit scores.
Automobile insurance companies will use a person’s credit profile for writing policies. Homeowner insurance underwriters apparently have decided that when you have a low credit score, you will make more claims. Therefore, insurance rates get higher.
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.
Have you been denied employment? If this has occurred, it is possible that the employer checked your credit profile, found it poor and decided that you would not be a fit for his business. He might think you would steal or be dishonest in other ways. So, now it can happen that your poor credit is perhaps going to cost you employment.
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.
Please do not ignore your personal financial situation. Remember all the areas of life that are affected by poor credit so work on fixing your situation.
