homeowners insurance credit score
We all know that a low credit score will make everything in the world of finance more expensive because of higher interest rates from lenders because it is considered greater credit risk (ie higher interest rates in the car, home or credit cards). While this can be considered well-known by some, is truly devastating effects are understood by few.
For example. If you buy a $ 200,000 house on a 30-year fixed mortgage interest 8% instead of 6% (because of your credit score), that 2% will end up costing a total of $ 96,934.11 during the term of the loan. Now, think about how many years "extra" you have to work to pay the $ 96,934.11 because of an extra 2% interest?
The part of some people talk is in all other areas of life in a low score will increase the cost of living on an annual basis. For example. In addition to paying more for a car, home and credit cards, low credit score is most likely that you pay more for the following too.
AUTO INSURANCE 1.). Up to 92% of the 100 largest automobile insurers use credit information staff underwriting new business, according to a 2001 study by Conning & Co., an insurance-research and asset management company.
2.) Home Insurance. It is thought many insurance companies see a correlation between low credit scores and increased property insurance claims. Therefore, a low score will result in more charges high.
3.) LIFE AND HEALTH INSURANCE. Customers who can not pay their monthly insurance premiums what happens along that increased cost to the insurance company whose stuck with the bill … resulting in a loss to the company. Since customers who pay without lapse are more profitable time is considered by many that a low credit score now even affects a monthly life and / or health insurance premium negatively.
One of the most shocking when a low credit score is going to cost in the area of employment. It is estimated that up to 42% of employers now do credit checks on applicants before hiring them (according to a survey in 1998 by the Society for Human Resource Management).
While many employers claim they only do so to "verify" information on your application (such as where you live and where they have worked, etc.), we can assume that both the freedom to "have a look" at how to manage their affairs financial statements. According to the Public Interest Research Group (PIRG) as many as 79% of all credit reports contain errors – 25% of which are sufficiently serious enough to cause a denial of credit (according to a 2004 report).
And that is even more disturbing in light of the growing impact of a credit report bad can be said Ed Mierzwinski, director of PIRG's consumer program. "It is outrageous that the credit bureaus are claiming their results are sufficiently accurate enough to have people's lives and screw with them like this. "
About the Author:
Jay Peters is the founder of Consumer Education Group which publishes the Credit Secrets Bible (in print since 1994). To receive Free Credit Tips including “how to get your credit reports for free” visit their website: http://www.TruthAboutCreditRepair.com
For media inquiries or interviews Jay may be contacted at (928) 848-1400 or email: JayPetersOnline@yahoo.com
Article Source: ArticlesBase.com – Is Your Credit Score Costing You A Fortune?
