insurance asset management survey
While some surveys show that 9 out of 10 consumers are unaware what their credit score is, I would quickly share with you how your credit score can cost you a fortune … in more ways than you can imagine.
We all know that a low credit score will make everything in the world finance more expensive because interest rates from lenders due to be considered a greater credit risk (ie higher interest rates in car, home or credit cards). While this can be considered well known by some, it's truly devastating effects are understood by few.
For example. If you buy a $ 200,000 house on a 30-year fixed mortgage interest of 8% instead of 6% (because of your credit score), that 2% goes to end up costing a total of $ 96,934.11 during the term of the loan. Now think about how old "extra" you have to work to pay the $ 96,934.11 because of an extra 2% interest?
The part of some people talk about is 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 most likely have to pay more for the following too.
AUTO INSURANCE 1.). Up to 92% of the 100 largest auto insurance companies reporting personal use credit to underwrite 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 claims property insurance. Therefore, a low score will result in higher rates.
3.) Life and health insurance. Customers who can not pay their premiums monthly insurance 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 striking areas where a low credit score is going to cost in the area of employment. It is estimated that up to 42% of employers now do checks credit of applicants before hiring them (according to a 1998 survey by the Society for Human Resource Management).
While many entrepreneurs claim only do it to "verify" information on your application (for example, where you live and have worked, etc.), we can assume that both are free to "look" on how to handle their financial affairs. According to the Public Interest Research Group (PIRG) as many as 79% of all credit reports contain errors – 25% of which are severe enough to cause denial of credit (according to a 2004 report).
And that is even more disturbing in light of the increasing impact a bad credit report can have, says Ed Mierzwinski, director of PIRG's consumer program. "It outrageous that the credit bureaus are claiming their results are accurate enough to have on people living and screw with them like this. "
About the Author:
Jay Peters is the founder of Consumer Publishing Group which publishes the Credit Secrets Bible (in print since 1994). To receive Free Credit Tips including “How to Bullet-Proof Yourself From Identity Theft For FREE!” visit their website: www.Credit-Secrets-Bible.net
Article Source: ArticlesBase.com – Five Things Every Woman Should Know Before Signing Any Credit Application!
Butch Britton, CEO of INGs U.S. Insurance division
