How a Low Score Can Increase Your Cost of Living

We all know a low credit score will make everything in the world of finance more expensive because of higher interest rates from lenders due to being considered a greater credit risk (i.e. higher interest rates on cars, homes and credit cards). While this may be considered common knowledge by some, it’s truly devastating effects are understood by few. In addition to paying more for a car, home and credit cards, a low credit score will most likely have you paying more for the following as well:
1.) AUTO INSURANCE. As many as 92% of the 100 largest personal automobile insurers use credit information to underwrite new insurance premium, according to a study by Conning & Co., an insurance-research and asset-management firm.
2.) HOMEOWNERS INSURANCE. It’s thought many insurance companies see a correlation between low credit scores and increased property insurance claims. Therefore, a low score will result in the higher rates.
3.) LIFE and HEALTH INSURANCE. Customers who are unable to pay their monthly insurance premium will increase cost to the insurance company that stuck with the bill (resulting in a loss for the company). Since customers who pay without lapse are more profitable it is felt by many that a low credit score now even affects a monthly life and/or health insurance premium negatively.
4) EMPLOYMENT. One of the more shocking areas where a low credit score will cost you is in the area of employment. It’s estimated as many as 42% of employers now do credit checks on applicants before hiring them (according to a survey by the Society for Human Resource Management).
While many employers claim they only do it to verify information on your application (such as where you live and where you have worked etc.), we can both assume they are taking the liberty to have a peek at how you handle your financial affairs as well.

For more information you may visit the “CREDIT SECRETS BIBLE” that has been in print since 1994 and is published by Consumer Publishing Group. This e-book can help you to improve your credit history.