Why Good Credit Is Imperative
Most of us want a good credit report to obtain automobile financing, credit cards for luxuries, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living. What you don't know about your credit could be hurting you.
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 high deposits and rates for everyday services.
Did you know that your credit can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner’s insurance, or keep you from getting hired?
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 they 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.
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.
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.
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.
Strong credit translates to personal reputation.
(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.
Jeanette Fisher, author of "Credit Help! Get the Credit You Need to Buy Real Estate," is on a one woman mission to help people buy their dream home or finance multiple investment properties. Jeanette teaches real estate investing and interior design psychology. For help with your credit, visit the Real Estate Credit Center at http://recredithelp.com/
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 high deposits and rates for everyday services.
Did you know that your credit can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner’s insurance, or keep you from getting hired?
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 they 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.
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.
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.
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.
Strong credit translates to personal reputation.
(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.
Jeanette Fisher, author of "Credit Help! Get the Credit You Need to Buy Real Estate," is on a one woman mission to help people buy their dream home or finance multiple investment properties. Jeanette teaches real estate investing and interior design psychology. For help with your credit, visit the Real Estate Credit Center at http://recredithelp.com/
posted by Jeanette at Thursday, March 10, 2005
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