A Bad Credit Score Is Expensive
You can run but you cannot hide from bad credit; it follows you everywhere. You will pay more for almost everything you do if your credit score is below recommended standards. If you really want to save money clean up a bad credit score. Learn your personal credit score by checking out Lending Tree.
#1 – Employment
Your employment options may suffer if you have bad credit. An employer that has a wide selection of candidates to choose from will most likely hire the individual with a better credit score. By law, and with your permission, an employer can order your credit report when you are interviewing. A credit report with too many negatives can be signal to the employer that you may be unorganized and have poor follow through.
#2 – Your Residency
What you pay for where you live can be effected by your credit score. If you rent your landlord could use your bad credit score against you and turn you down, charge you much higher rent or require a higher security deposit from you. If you are buying a house, the mortgage company can again deny your loan or charge you a much higher interest rate.
#3 – Your Transportation
You could be turned down for a car loan if you have a poor credit score. If you are not denied, the interest rate you will pay on the loan will be a much higher rate.
#4 – Insurance Rates
Bad credit is interpreted by insurance companies as bad news. Insurance actuaries crunch numbers all day long using data from many different sources. The insurance companies use actuarial numbers to determine insurance rates. Insurance statistics have proven that an individuals with a low credit score is more likely to file insurance claims.
#5 – Your Utility Rates
Electric and gas companies use credit ratings when determining your rates. The cost of those utilities is high enough to begin with; why increase your cost with bad credit.
#6 – Cell Phone Costs
Cell phone companies also use your credit score when determining your service plan. If you have poor credit they will charge you more for service or demand from you a bigger down-payment.
#7 – Credit Card Rates
When you have to pay higher rates on your credit card balances you pay more for everything you buy. Credit card companies take credit scores very seriously and so should you.