Your Credit Score Can Be Costing You A Fortune
By: Maria | Posted: 30th January 2008
Your Credit Score Can Be Costing You A Fortune.
Studies have shown that only 30% of consumers fully understand their credit score. The rest could be making costly mistakes.
Did you know, having a poor credit score can cost you over a million dollars in your lifetime?
Consumers will be granted or refused credit, jobs, insurance, rental housing, personal loans, utilities and financing pretty much anything, all based on your credit score.
Having good credit is more important now than ever before!
This may be common knowledge to some but most people probably don’t realize the truly devastating effects a low score can cause. I will explain a few here.
For example on a $200,000 mortgage, (Mortgage for 30 years) you would save an extra $96,934.11 With an interest rate 2% lower because of good credit scores.
Low scores will increase your cost of living on an annual basis. In addition to paying higher house payments, higher credit card interest and higher interest on car loans you will most likely be paying more for…
Auto Insurance. 90% of Auto Insurance, Homeowners Insurance, Life and Health Insurance Companies, Use your credit score to underwrite new business with you.
Homeowners Insurance. They may consider a consumer who has a low score to be more of a risk of not paying the monthly premiums. This will result in higher premiums.
Life Insurance and Health Insurance. Just like the homeowner insurance companies they may see a low score consumer more likely unable to pay monthly premiums. This will cost the insurance companies money to cover the losses in premiums. Higher risk = higher premium.
Here is a shocking one. Did you know that 42% of Employers do credit checks of their applicants before hiring?
Public Research Group states that 79% of all credit reports contain errors on them. 25% of those errors dramatically affect the credit score and can cause the consumer denial of credit.
Did You Know… the three nationwide consumer reporting companies- Equifax, Experian, and Trans Union- are required to provide consumers with a free copy of their credit report, at their request, once every 12 months? Consumers who want to access their credit report online can go to…
http://www.annualcreditreport.com
Not knowing what is on your credit report can cost you hundreds of thousand of dollars. There can be mistakes on the credit report that can cost you dearly. Make sure you take advantage of this free report and check you credit regularly.
To learn more about being in control of your finances and improving your credit score, take advantage of our free mini credit book. You can learn Simple ways to dramatically increase your credit score.
Http://www.raisecreditscore101.com
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Tags: research group, health insurance companies, common knowledge, health insurance, personal loans, costly mistakes, credit checks, car loans, life insurance, insurance life, poor credit score, credit card interest, premiums, auto insurance, homeowners insurance, insurance homeowners, good credit scores, mortgage mortgage, homeowner insurance