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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Buying Life Insurance Online ? Is It A Really Good Idea?
Buying Life Insurance Online ? Is It A Really Good Idea?
by: Michael Challiner
The advent of the internet has opened up the possibility of cheaper life insurance for all.
In years gone by, if you were considering life insurance you would probably have invited an insurance salesman from your favourite insurance company to meet you or alternatively gone to your local insurance broker. But rarely would you have been courageous enough to get competitive quotations. It just wasn?t done. You trusted the salesman to do the best for you and surely you thought, life insurance is somewhat technical and requires specialised knowledge. All very cosy. All very expensive. How life has changed!
People now realise that life insurance is not that complicated. If on a scale of 1 to 10, buying car insurance online rates 9, life insurance must be a 7 or 8. This has opened up the Internet as a prime arena for cut-price life insurance. That?s not to imply that...
Buying Life Insurance Online ? Is It A Really Good Idea?
Insurance > Buying Life Insurance Online ? Is It A Really Good Idea?
Tips for Buying a New Home
Tips for Buying a New Home
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Learn from others' mistakes and save money on your new home
Buying a new home can be a daunting task, even for someone who has owned several homes. If you recently purchased your first home, you probably found that is hard to find good advice that is truly useful. You had to learn a lot on our own, but at least now you probably feel comfortable and knowledgeable about the whole process.
My wife and I recently purchased a new home in Tennessee. Here are some helpful hints we picked up along the way:
1. Use all of the online resources available. Almost every state and local government has a website where you can research real estate information. The data on home sales, taxes, and neighborhoods is invaluable when you are shopping for a home. We were able to find out the most recent sale prices in the neighborhood we selected, and we didn't have to rely on a real estate agent to get the...
Tips for Buying a New Home
Insurance > Tips for Buying a New Home
Health Insurance
Health Insurance
by: Sara Chambers
When you are in your late teens and twenties, possibly up to the age of forty, it?s hard for people to understand why they need health insurance.
For some people, it may be less expensive to pay full price when going to the doctor then pay the monthly fee associated with health insurance.
These people may ask whether or not health insurance is even worth it.
For most people, however, health insurance is a huge money saver.
But what are the different types of health insurance and how should you go about determining what is right for you.
There are mainly two types of insurance:
Indemnity plans and managed care plans.
Indemnity plans are insurance plans in which an insurer reimburses the insured for medical expenses no matter who provided the service.
There are three plans within the indemnity category.
These include reimbursement of actual...
Insurance > Health Insurance
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by: Maricon Williams
Choosing and purchasing a bike is no easy matter. You will be first entangled to lots of choice making it harder for you to choose. There are a lot of influences from persons close to you as well as from a pool of authority people. Each of them is offering a good bike but how are you to choose?
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There are those who are solid to Harley Road King. For them, it is important that your bike?s tank has the Harley-Davidson?s stamped legacy. Others go for Suzuki while others are for Yamaha. There are those who are more on the performance aspect. They are considering a bike which can still comfort even...
Trepidation in Choosing a BIKE
Insurance > Trepidation in Choosing a BIKE
Health Insurance
Health Insurance
by: Sara Chambers
When you are in your late teens and twenties, possibly up to the age of forty, it?s hard for people to understand why they need health insurance.
For some people, it may be less expensive to pay full price when going to the doctor then pay the monthly fee associated with health insurance.
These people may ask whether or not health insurance is even worth it.
For most people, however, health insurance is a huge money saver.
But what are the different types of health insurance and how should you go about determining what is right for you.
There are mainly two types of insurance:
Indemnity plans and managed care plans.
Indemnity plans are insurance plans in which an insurer reimburses the insured for medical expenses no matter who provided the service.
There are three plans within the indemnity category.
These include reimbursement of actual...
Insurance > Health Insurance
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Are you looking to buy a life insurance policy?
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Recently a prominent life insurance company together with several of its agents paid a huge fine because it permitted the sale of a life insurance policy disguised as a retirement plan.
There was little attention given to what a life insurance policy is truly designed to provide.
Life insurance is not an investment for your benefit.
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If you deeply care for someone and want to protect them, then buying a life insurance policy makes sense.
As primary bread winner in your family, your lost income could jeopardize the ability of those you love to...
The Life Insurance Policy and What You Need to Know Before You Buy
Insurance > The Life Insurance Policy and What You Need to Know Before You Buy
Do I Need Renter's Insurance?
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by: Dan The Roommate Man
If you are moving into an apartment you may want to consider investing in insurance. Along with the first month's rent, chances are you will be asked to pay a security deposit. This is a type of insurance for your landlord. The landlord can use this deposit to pay for any damages caused during your residency. For you, security comes in the form of renter's insurance.
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Do I Need Renter's Insurance?
Insurance > Do I Need Renter's Insurance?
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by: Auto Insurance Spot
A great deal is at stake when choosing an auto insurance
carrier. In addition to the financial considerations,
there are issues such as reliability, quality of service,
and integrity. Luckily, there are certain steps you can
follow to ensure that you select an auto insurance company
that will meet your needs.
When choosing an insurance carrier, reputation carries a
great deal of weight. For instance, Allstate, Nationwide,
and State Farm are well-known companies that have managed
to hold onto some clients for years. For additional
guidance, you can consult your state's department of
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claims filed. This information can help you to better
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Avoiding Disaster: Choosing the Right Auto Insurance Company
Insurance > Avoiding Disaster: Choosing the Right Auto Insurance Company
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